debtor

(noun)

One who owes another anything, or is under obligation, arising from express agreement, implication of law, or principles of natural justice, to pay money or to fulfill some other obligation; in bankruptcy or similar proceedings, the person who is the subject of the proceeding.

Related Terms

Examples of debtor in the following topics:

  • Classifying Receivables

    • Receivables can be classified as accounts receivables, trade debtors, bills receivable, and other receivables.
    • The debtor is free to pay before the due date.
    • On a company's balance sheet, receivables can be classified as accounts receivables or trade debtors, bills receivable, and other receivables (loans, settlement amounts due for non-current asset sales, rent receivables, term deposits).
    • The Accounts Receivable Age Analysis Printout, also known as the Debtors Book is divided in categories for current, 30 days, 60 days, 90 days, 120 days, 150 days,180 days, and overdue.
    • Distinguish between accounts receivable, trade debtors, bills receivables and other receivables

  • Activities to Manage Receivables

    • Accounts receivable (or debtors) represent money owed to a business by its clients (customers).
    • The amount of money owed at the end of each month varies (debtors).
    • While the collection's department seeks the debtor, the cashiering team applies the monies received.
    • The debtor is free to pay before the due date.
    • The amount of the bad debt provision can be computed in two ways, either (1) by reviewing each individual debt and deciding whether it is doubtful (a specific provision) or (2) by providing for a fixed percentage (e.g. 2%) of total debtors (a general provision).

  • Components of a Note

    • Doing so gives the debtor more time to pay.
    • Occasionally, the notes receivable will include a personal guarantee by the owner of the debtor.
    • A notes receivable normally requires the debtor to pay interest and extends for time periods of 30 days or longer.

  • Using the Receivables Turnover Ratio

    • The receivables turnover ratio, also called the debtor's turnover ratio, is an accounting measure used to measure how effective a company is in extending credit as well as collecting debts.

  • What Is a Receivable?

    • The amount of money owed at the end of each month varies (debtors).
    • While the collection's department seeks the debtor, the cashiering team applies the monies received.

  • Valuing Notes Receivable

    • The credit instrument normally requires the debtor to pay interest and extends for time periods of 30 days or longer.
    • by providing for a fixed percentage (e.g. 2%) of total debtors (a general provision)

  • Recognizing Notes Receivable

    • The amount of the bad debt provision can be computed in two ways, either (1) by reviewing each individual debt and deciding whether it is doubtful (a specific provision); or (2) by providing for a fixed percentage (e.g. 2%) of total debtors (a general provision).
    • The two methods are not mutually exclusive, and some businesses will have a provision for doubtful debts, writing off specific debts that they know to be bad (for example, if the debtor has gone into liquidation. )

  • Reporting Receivables

    • The accounts receivable age analysis, also known as the Debtors Book, is divided into categories for current, 30 days, 60 days, 90 days, 120 days, 150 days, 180 days, and overdue that are produced in modern accounting systems.

  • Characteristics of Bonds

    • In finance, bonds are a form of debt: the creditor is the bond holder, the debtor is the bond issuer, and the interest is the coupon.

  • Dealing with Foreign Currency and Bad Debts

    • The amount of the bad debt provision can be computed in two ways: either by reviewing each individual debt and deciding whether it is doubtful (a specific provision), or by providing for a fixed percentage (e.g. 2%) of total debtors (a general provision).