09 April 2010
Please explain the difference between 'Trade Creditors Personal Account' and 'Total Creditors Account' when they are being maintained separately in Creditors Ledger and General Ledger respectively.
What is the nature of entries represented by both of them ?
Pl. Clarify if Total Creditors Account shows all the creditor's entries from their respective personal A/cs.
09 April 2010
Trade Creditors Personal Acc. reperesents the dealers or persons whom we purchase raw material, semi finsihed goods or finished stocks for the purpose of further sale. It represents the amount due in respect of the trading activity.
Total creditors Accounts include other persons to whom we have to pay like for indirect expenses of office material, purchase of fixed assets or equipment, amount due for utility bills etc. It represents the amount due in respect of the activities auxilarry or provides supportive or administrative functions to the trading activities
Please explain the nature of above mentioned accounts i.e. what its balances represent and its uses.(Some practical knowledge useful in preparing respective accounts)
10 April 2010
Hello, i agree with rahul gupta and not with the persons just righting agreeeing when you asked the other question... First request: Cant you give some examples or answers other than just writing agreed. You jst know only one answer in every question?????/
For you Savita: Its right said by rahul... They both are the creditors only. They will be shown in liabilities only.Both wil have credit balance. To create two groups in balancesheet it represents: For trade creditor personal account: Easily can understood who are trade creditors responsible for the regular purchase of raw material( goods).
For Total creditors account: It includes trade creditors + amt of purchase of other office material+ government charges, electricity bill etc which you are required to pay...
Eg:
Trade creditors: 10000 Electricity bills: 2000 Water charges: 1000 creditors fr purchase of fixed assets:2000
Total Creditors: 15000
I hope its clear....
ANd pls no ans of Agreeed below me except Mr. rahul can write as he seeems intelligent and contributing to Ca club...He can write agreeed
10 April 2010
Mr Shivang is rightly said a valid question, everybody is writing agreed/ well explained, etc instead of giving a dif. view or answering affirmatively in dif. manner, simple writing agreed is useless. when a question is raised give ur comment not just agree to the answer. I think this type of comment to be avoided in future.
10 April 2010
Well Said Mr.Gangadhar. I also agree with you and Mr.Shivang. I justify the answer of agreed, if it is given by the first 2-3 persons and after that if there is any additional point or concept to be informed for the knowledge of the expert and Querist.
The first 2-3 agreed are ok and i think also helpful, to give confidence to the Querist and the Expert that the concept and answer is correct. But an agreed after 2-3 times without any additional point to be added are seems to be useless and annoying.
I hope i am not hurting anybody, but just sharing my point of view. Also, i apologize for making this point here as this is not the right place to discuss this, but since it is discussed here so i posted it here.. Sorry for that. Regards CA Rahul Gupta
CAclubindia
