The creditor rsquo s accounts generally have credit balance Debit balance may be due to ........

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The creditor’s accounts, generally, have credit balance. Debit balance may be due to

Advance paid against an order

Goods returned

Wrong debit to supplier account

Any of these

- Option 1: Advance paid against an order

- When a payment is made in advance for goods or services, the balance on the creditor's account can temporarily appear as a debit.

- Option 2: Goods returned

- If goods are returned to the supplier, a debit entry is made in the creditor's account to reflect the return, leading to a possible debit balance.

- Option 3: Wrong debit to supplier account

- An incorrect debit entry in the supplier’s account can cause a debtor’s balance instead of a creditor’s balance.

- Option 4: Any of these

- This option includes all the situations above. Any of these scenarios can lead to a debit balance in a creditor’s account.

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