The term Creditor is commonly used word in Accounting, and Finance field. In general practice the word Creditor is used as Supplier, Owner, Lender etc., A Creditor is also referred in Trading, Business prospects. It might be either living entity like a Proprietor or a corporate sector like a Private Limited Company or Multi National Company.
Sundry Creditor is mostly used to represent the financial information about the supplier, or service providers. Whenever you get something from a person, or organization then he will become as a Creditor when he do not get something in return for the transaction on the spot.
When an organization or a person sells either services or goods to his customer on credit bases then he will be treated as Creditor in the business transaction.
When a person lends money to a person that lender will be treated as Creditor in the view of the borrower.
In the Financial world term Creditor is very frequently used, especially in reference to Loans, Bonds, and Mortgages. It derives from the notion of credit. In past, it was also referred to reputation or trustworthiness.
Sundry Creditor is a Liability for the Company as the Firm owes to the outside person as the firm utilizes the other services or purchased something on credit. Then he will be the Creditor and List of Creditors will be shown as Sundry Creditors in the Balance Sheet under Liabilities.
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