Trade Debtors

What are Trade Debtors?

Trade Debtors are amounts which are owed to you by your customers, they are sometimes referred to as Trade Accounts Receivable.

When you allow your customer credit and invoice them for a product or service and receive payment at a later date 30 days 60 days etc, then while they owe you the money they are classified as trade debtors.

Trade Debtors are recorded in the balance sheet of the business under the heading Current Assets, that means they are convertible into cash within a year.

For further information on a Trade Debtors see the Wikipedia definition.

Learn a new bookkeeping term

Random bookkeeping terms for you to discover.

Link to this page

Click in the box and paste the link to your site.



Return to the Dictionary

Trade Debtors March 23rd, 2016Team

You May Also Like