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Explain What is the difference between debenture holders and creditors?

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Question added by manseer muhammed ali , Accountant General , Royal Lighting L.L.C & Royal Furnishing LLC
Date Posted: 2017/02/07

1-Debenture holder gets the first preference for the payment when winding up of the company

Creditors are those on whom company is having liability for the payment towards services rendered.

2-Debenture holder provides long term finance to the company & get the interest even if there is no profit.

Creditors are who provides trading goods as well as raw material to the company on credit for short term.

Abdullah Aziz Eldain Morsi  Elgendy -        CMA  Candidate
by Abdullah Aziz Eldain Morsi Elgendy - CMA Candidate , Regional Receivable Accountant , Amiantit Group of Companies

Debenture holder

are those who provides long term loan at specific interest rate in term of cash 

creditor

provides only short term credit in term of cash for purchasing of goods

 

Soliman Abd  ALmalak Gendy
by Soliman Abd ALmalak Gendy , مدير ادارة مراقبة حسابات , الجهاز المركزى للمحاسبات

Debenture holders provide long term loan at specific interest rate in term of cash and creditor provides only short term credit in term of cash for purchasing of goods. _The creditors are related with the goods, or merchandise.thet come under the liabitilies . _They are current liabilities. _Debenture holde gets the first preference for the payment when winding up of the company. Creditors are those on whom company is having Liabilitily for the payment towards services. rendered

Hashem Albasha
by Hashem Albasha , Accounting Support Adviser , AL Mustwa AL Raqi

Debenture Holders are considered as investors get a certain profit

Creditors are owed the company money

Muhammad Tahir Godil
by Muhammad Tahir Godil , Financial Planning and Analysis Manager , The Court Group Of Companies

Debenture Holders Means That Company Has Issued Certificates To Take A Loan For Certain Fix Period of Time Normally For More Than One Years & Normally Classify In Balance Sheet As Long Term Liabilities

 

Creditors Are Generally Used For Credit Party Suppliers Which Means That Company Is Taking Supplies On Credit Or Doing Some Operational Trading On Credit Terms/Trading Terms 

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