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In a balance sheet, creditors are listed under liabilities, representing money owed to external parties. They include loans, bonds, or unpaid bills. These obligations are typically accompanied by an obligation to pay interest.
Debtors, on the other hand, are listed under assets, representing money owed to the company by others. They include accounts receivable, loans provided, or sales made on credit. The balance sheet reflects the company’s financial position, showing its ability to meet its obligations (creditors) and its claims on others (debtors). This can also be calculated using the Current Asset Ratio.