, Term 3
Lesson 1 & 2 - CREDITORS (CONCEPTS, CREDIT
Financial literacy term 3 TRANSACTIONS, SOURCE
DOCUMENTS & JOURNALS)
Lesson 3 & 4 - CREDITORS (GENERAL
LEDGER, CREDITOR ledger)
,What is a creditor?
❏ Creditors are suppliers that allow the business to take items
but only pay at a later stage.
❏ A benefit of purchasing trading stock on credit is that the
goods can be sold and received before the business has to pay
for the stock – this helps its cash flow.
, ‘When the business purchases goods,
items, or services on credit, the
person/business from whom we purchased
is known as the creditor.’
Creditors = current liability
Lesson 1 & 2 - CREDITORS (CONCEPTS, CREDIT
Financial literacy term 3 TRANSACTIONS, SOURCE
DOCUMENTS & JOURNALS)
Lesson 3 & 4 - CREDITORS (GENERAL
LEDGER, CREDITOR ledger)
,What is a creditor?
❏ Creditors are suppliers that allow the business to take items
but only pay at a later stage.
❏ A benefit of purchasing trading stock on credit is that the
goods can be sold and received before the business has to pay
for the stock – this helps its cash flow.
, ‘When the business purchases goods,
items, or services on credit, the
person/business from whom we purchased
is known as the creditor.’
Creditors = current liability
