Sundry Creditors

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Meaning –

Sundry creditors are those individuals or firms or companies with whom we do a transaction on credit.

Sundry creditors are also known as trade creditors. They are the supplier of the business and hold Liability by us.

Dictionary meaning of the word “Sundry” is various or several.

Specifically, in accounting, it means, a classified group of unassigned individual ledger accounts.

Generally, non-accounting people will get confused due to the word “Sundry” when they start learning to account. For them, a small note – this word won’t be alone, either it will suffix with Creditors or Debtors.

Example –

Mr. “A” purchased goods of $5,000 from Mr. “B” on 24th September 2018.

(In an example the transaction should be considered as a credit transaction until it clearly mentions about cash transaction.)

Journal Entry (in the books of Mr. “A”)

Debit – Purchase Account ……………………………………………………………. $ 5,000

Credit – Sundry Creditors/Supplier (Party) Account ………………………… $ 5,000

In the balance sheet, the consolidated balances of similar creditors will be presented under Sundry Creditors as company’s/firm’s liability.

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