Accounting explained
Sundry Debtors and Creditors: Meaning, Format and Example
Sundry debtors are the many customers who owe your business money for goods sold on credit. Sundry creditors are the suppliers your business owes for goods bought on credit. Between them they decide how much cash is free in the shop.
Meaning
"Sundry" just means many and small. Rather than show each customer separately, the balance sheet totals them as sundry debtors (also called trade receivables or accounts receivable) under current assets, and totals suppliers as sundry creditors (trade payables or accounts payable) under current liabilities. Behind each total sits a ledger account for every party, showing bills, payments, returns and the running balance.
Worked example: who owes Sri Lakshmi Stores
| Customer | Balance at 31 March 2026 |
|---|---|
| Annapoorna Mess | ₹48,000 |
| Sagar Tiffin Centre | ₹36,000 |
| Vidya PG Hostel | ₹21,000 |
| Other regular customers (udhar) | ₹15,000 |
| Sundry debtors | ₹1,20,000 |
Ageing: how old the money is
| Days since the bill | Amount | Share |
|---|---|---|
| 0–30 days | ₹72,000 | 60% |
| 31–60 days | ₹30,000 | 25% |
| 61–90 days | ₹12,000 | 10% |
| Over 90 days | ₹6,000 | 5% |
| Total | ₹1,20,000 | 100% |
With ₹8,00,000 of credit sales in the year, ₹1,20,000 outstanding means customers take about 55 days on average (1,20,000 ÷ 8,00,000 × 365).
Whom Sri Lakshmi Stores owes
| Supplier | Balance at 31 March 2026 |
|---|---|
| Sri Ganesh Agencies (groceries) | ₹95,000 |
| Kaveri Oils | ₹50,000 |
| Mysuru Snacks Distributors | ₹35,000 |
| Sundry creditors | ₹1,80,000 |
Against purchases of ₹38,20,000, the store pays suppliers in about 17 days on average, while waiting about 55 days for its own credit customers. That gap is cash tied up.
Managing udhar without losing customers
- Set a credit limit for each customer and stick to it
- Agree a payment day, such as the 5th of each month, for regular accounts
- Send a statement every month, not only when you need money
- Chase anything over 60 days before allowing more credit
- Write off a bad debt only after real efforts, with an entry: Dr Bad debts, Cr the customer
Common mistakes
- Keeping udhar in a notebook that never meets the books
- Recording a customer payment without linking it to the invoice it settles
- Netting off a customer who is also a supplier without an entry
- Ignoring small old balances until they cannot be recovered
- Showing advances from customers as debtors instead of liabilities
In the balance sheet
On 31 March 2026, Sri Lakshmi Stores shows sundry debtors of ₹1,20,000 under current assets and sundry creditors of ₹1,80,000 under current liabilities. They are not netted against each other, even though the totals are close: they are owed by and to different people. Advances received from customers before supply are shown as liabilities, and advances paid to suppliers as assets, separately from the trade balances.
Key terms on this page
- Trade receivables: the accounting standards' name for sundry debtors from sales
- Trade payables: the name for sundry creditors from purchases
- Credit limit: the most a customer may owe at one time
- Bad debt: an amount written off as unrecoverable, recorded as an expense
- Statement of account: a customer's ledger shared with them, listing bills, payments and the balance
About the worked example
The examples on our accounting pages follow one shop through one year: Sri Lakshmi Stores, a kirana in Mysuru owned by Ramesh, for the financial year 2025-26. It sold ₹48 lakh of goods (before GST), made a gross profit of ₹10.4 lakh and a net profit of ₹4.7 lakh, and ended the year with a balance sheet total of ₹7.95 lakh. The figures are illustrative but they add up across every page, so you can follow one transaction from the journal to the balance sheet.
How TripleBill handles it
TripleBill keeps a ledger for every customer and supplier, with receivable and payable ageing (0–30, 31–60, 61–90, 90+ days), a credit limit per customer and reminders you can share. Statements can be shared as a link; sending invoices on WhatsApp from the app is on Pro.
General information on bookkeeping, not accounting or tax advice. For your final accounts and filings, consult a chartered accountant.
Last reviewed
Last reviewed: November 2026.
Frequently asked questions
What are sundry debtors?
Customers who owe the business money for goods or services supplied on credit. They are current assets.
What are sundry creditors?
Suppliers the business owes for goods or services bought on credit. They are current liabilities.
Is a sundry debtor an asset?
Yes, a current asset, because the money is expected within a year.
What is debtor ageing?
A report that splits what customers owe by how long it has been outstanding, such as 0–30, 31–60, 61–90 and over 90 days.
How do I record a bad debt?
Debit Bad debts (an expense) and credit the customer's account. If GST was charged and paid on the invoice, ask your accountant about the GST treatment.
What is the difference between debtors and creditors?
Debtors owe you; you owe creditors.
Should I charge interest on overdue udhar?
Only if agreed with the customer in advance. Most shops find a firm credit limit and regular statements work better than interest.
How do I record a customer who is also my supplier?
Keep the two ledgers separate and settle by agreement with a set-off entry, debiting the supplier account and crediting the customer account, with the customer's written agreement.
Are GST and TDS amounts part of debtor balances?
Yes. A customer owes the full invoice value including GST. If a business customer deducts tax at source, the balance is cleared partly by payment and partly by the TDS credit, which you then match against the tax records.
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