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Trade Receivables and Payables

Trade receivables, debtors, bills receivable, trade payables, creditors, and bills payable with definitions and Schedule III references.

Notes

Trade Receivables and Payables

Class 11 Accountancy — Accounting Terminology

Trade Receivables

Trade Receivables
Amount receivable against sale of goods and/or services or both.

Trade Receivables represent the total amount receivable by an enterprise against the sale of goods and/or services rendered in the ordinary course of business.

Trade Receivables = Debtors + Bills Receivable

As per Schedule III of the Companies Act, 2013: Trade Receivables are the amounts receivable by the enterprise against goods sold and services rendered in the normal course of business.

Trade Payables

Trade Payables
Amount payable against purchase of goods and/or services or both.

Trade Payables represent the total amount payable by an enterprise for the purchase of goods and/or services taken in the ordinary course of business.

Trade Payables = Creditors + Bills Payable

As per Schedule III of the Companies Act, 2013: Trade Payables are the amounts payable by the enterprise against goods purchased and services taken in the normal course of business.