In this clip, we will talk about some other accounting terms
Trade Receivables
Friends, let's try to understand the meaning of trade
receivables
Pay attention
My name is Mr.
I will not be able to tell you your real name
For now, my name is Mr.
I sold goods to a man named Y for 1 lakh rupees
He said, I will pay you after 3 months
I said, no problem
He will pay me after 3 months
He will call me DEBTORS debtors
Debtors, be silent
DEBTORS debtors, be silent
He will call me debtors
But friends
If I tell him
You are saying that you will pay me after 3 months
But what is the guarantee that you will pay me after 3
months
It is possible that you will leave me after 3 months
So do one thing
Give this in written
That you will pay me after 3 months
Sign and give it
Whether in the form of a cheque
Whether in the form of a cheque after 3 months
Whether in written form
In the form of a bill of exchange
But give it in writing
As soon as he writes it
He will not be called a debtor for me
Then he will be called BILLS RECEIVABLE
Whether he gives me a cheque after 3 months
Whether he writes a letter to me in the form of a bill of
exchange
He will not be called a debtor for me
He will be called BILLS RECEIVABLE
So debtor means
You have sold goods
The money has not come
It will come after 3 months
And did not take anything in writing
But debtor means risky
Yes, it should be taken in writing
And you have sold goods
The money will come after 3 months
But you have taken this thing in writing
From the opposite party
He can't refuse
Can't refuse
So he will become
BILLS RECEIVABLE for you
Sir, you were telling the meaning of trade receivable
Where did you get the meaning of debtor and bill receivable
Friend debtor and bill receivable
Both are called trade receivables
One heading of both is called trade receivable
Like Rohit Sharma, Virat Kohli, Shubhman Gill
Bhuvneshwar Kumar, Rishabh Pant
Such 11 people
Their individual names are different
But if all of them are given a heading
What do you say
India playing 11
Let's say India playing 11
Exactly the same way
Here too
Debtor and bill receivable
If you have to give a heading by combining both
Then it will become
Trade receivables for us
So first let's understand the meaning of debtor
What is written with us
Let's see
Includes a person who receives a benefit
Without paying money immediately
Debtor is a person
Who has benefited
But has not given us money yet
He took the goods
Benefit He got the goods
But he has not paid us yet
But liable to pay in future
Within a particular period of time
He has not given money yet
But he has to give
He is liable
He is responsible
He has written
He has not given
But he has said word of mouth
We will consider him responsible
Yes sir
After some time he will give money
He has not given but he will give
He owes an amount to business
Against credit sale of goods, services, rent
And why is he owing that money
Because we have sold some goods
Or provided some services
For example
I have taught a student
He is saying
I will pay the fees next month
After one month
So he will become a debtor for me
And how can I meet him in writing
How can I meet him in writing
For one fee
For a person
Who has been studying with me for 11 months
For 12 months
He is saying
I will pay after one month
So how can I meet him in writing
You must be thinking
Sir should meet every person in writing
How to meet every person in writing
Tell me
Somewhere you have to trust
You have to believe
He has been here for so long
So he will pay
Hmm But if there is a doubt
You are dealing for the first time
Then the amount is very huge
How much is the monthly fee
Rs.1500-2000 Or the amount is very huge
And if you take it in writing
Then it will become bill receivable
It is the amount of bills of exchange
Accepted by a debtor
Specifying the amount of which
Will be received on the specified date
From him by the business
This is the same thing
Bill of exchange means
If you take it in writing
Either take it in cheque or letter
If you take it in writing
From the debtor
That you will give money
Sign this thing
Then it will become
Bill receivable for us
Trade receivables
It is the amount
That is receivable
For sale of goods and services
Rendered in the ordinary course of business
Sum total of debtors and bill receivables
This is what is written above
What I was saying for so long
The same thing was written above
What was written above
The same thing
That the sum of debtor and bill receivable
Is called trade receivable
Okay sir
Okay Now let's come to trade payables
Now let's come to trade payables
Trade receivable
Just ultra trade payable
And to understand the meaning of trade payable
Now you need to know
The meaning of two words
One is creditors
And the other is bills payable
One is creditors
And the other is bills payable
I will give you an example of this too
This time I am Mr.
And there is a person in front of me
Whose name is Mr.
I, Mr.
Purchased loan goods from Mr.
For 1 lakh rupees
And I told him
I will give you the payment after 3 months
He trusted my word of mouth
He did not take anything from me in writing
I brought things worth 1 lakh
And kept it in my house
And I am living happily for 3 months
That I will have to pay after 3 months
For me
For 3 months
This 1 lakh rupees
Will be called creditors
That person
Whose name is Mr.
He will be called my creditor
For me, creditor
For any person
What does creditor mean?
The one who has to pay him money
The loan of whose name
Is hanging on his head
And whose loan?
The loan to buy goods
If I have bought goods from him
That thing which I am going to sell
He will be my creditor
For all the time
I have asked him for loan
That I will give him this much time
Till that time
He will be called my creditor
But if he is sensible
If he is sensible
If he says
I do not trust your word of mouth
He says the amount is very huge
Give it in writing
Should I give it in return?
Should I sign it?
Or should I make a cheque
And give it after 3 months
Then in that condition
He will become bill payable for me
Will become bill payable
That means you can think like this
A little while ago
Mr. Y
Was a debtor for me
If I sign it
Then I become bill payable
Who was I for Y?
A little while ago
For Y
You were a creditor
And if Y has signed it
Then I become bill payable
Whatever Z is being made for me
I am for Y
So a person has debtors
And a person has creditors
A person has bill receivable
And a person has bill payable
Let's read the English word
Which is written in English
Creditors
A creditor is a person
Who gives a benefit
Without receiving money immediately
But to claim it in the future
Who is a creditor?
Mr. Z
Who gives a benefit
Who has given me goods
Without receiving money immediately
And he hasn't received money from me yet
I haven't given him money yet
But to claim in future
But he will take money from me in future
Not now, but in future
It is to whom our business owes an amount
This is the person
To whom our business owes an amount
Means the person whose money is borrowed above the business
Against credit purchase of goods
Why loan?
Because we have bought goods from him
We have taken loan or services from him
Okay sir
Bill payable
It is the amount of bill of exchange
Accepted by the person or enterprise
If I accept this thing
And give it in written
That yes, I will give you money
By signing
Make a cheque and give
Then it will become bill payable for me
The amount of which will be payable
On the specified date
And whatever is there in the bill
In the letter, in the cheque
The amount will be paid on that date
So it will become your
Bills payable
Okay Come here friends
Let's talk
Bought goods on loan
Creditor Signed and gave it
In written or cheque
Bill payable
Sold goods on loan
Debtor Signed and took from him
Or took bill receivable letter
Or took cheque
Bill receivable
Debtor and bill receivable
Both are called
Trade receivable
What is the heading of both
Creditor and bill payable
Trade payable
Okay sir
What is written in trade payable
Let's read that also
It is the amount payable
For purchase of goods
And or services
Taken in the ordinary
Course of business
In other words
It is the sum total
Of creditors and bill payable
He is saying
If we talk in simple words
Then the total of creditor
And bill payable
Is called trade payable
The total of creditor
And bill payable
Is called trade payable
Okay So friends
This was with us
Trade receivable
And trade payable
Debtor, creditor
Bill receivable
And bill payable
Thank you