What is the definition of the term "sundry creditors"?


Quick Answer

In accounting, the term "sundry creditors" is used to designate a group of suppliers on a ledger sheet, according to The Law Dictionary. It is typically used for suppliers that are used infrequently or that do not fit into categories generally used by a business, although according to FinanceReading.com, it can be used for any customized grouping of organizations to which a person or company owes money.

Continue Reading
What is the definition of the term "sundry creditors"?
Credit: RUNSTUDIO Photodisc Getty Images

Full Answer

When formulating a balance sheet, the term "sundry creditors" can be used as a heading for all the money owed to an entity for goods and services, but not money owed as interest on a loan or as taxes, according to FinanceReading.com. The heading is listed under the category of liabilities, which, according to Investopedia, includes all financial obligations of an entity.

The term "sundry debtors" is the reverse of sundry creditors, and refers to a group of entities who owe money to a person or organization. On a balance sheet, the heading of sundry debtors is categorized under assets, which Investopedia defines as anything that can be converted into liquid cash. A sundry creditor can also be considered a subcategory of creditors in general, which are defined entities that have extended credit to another entity, either in the form of a loan or in a contract for goods and services provided, as explained by Investopedia.

Learn more about Credit & Lending

Related Questions