Answer Posted / dharmesh sati

Creditors - If ABC LTD companay had purchased material from
XYZ Company in that case

For ABC LTD XYZ is Creditors mean ABC have to pay to XYZ &
For XYZ ABC is Debtors mean XYZ will received amount from
XYZ

In short Creditors are liability for Business & Debtors are
assets of Business

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