Debtors or Accounts Receivable Definition


The persons to whom the goods or services have been sold on credit and from whom the amount is receivable are called “Debtors”.  The accounting process often referred to as Accounts Receivable is the system used to manage debtor accounts.


John sold goods to Harry on credit for $500, Harry is a debtor of John.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.