?WHAT IS DEBTOR AND CREDITOR
DEBTOR

To whom the goods are sold on credit rather than on cash becomes the debtor of the seller, the seller has to receive money from him and treats him in his books as asset in the form of debtor. Actually that money is his asset which he has to receive from him.

CREDITOR

On the other side, the purchaser of these goods treats the seller as his creditor because he owes some money to seller. Unless he pays the price, he treats it as a liability in the balance sheet.