For trades payable it is written in the bracket Creditors. So this should be understood like the company has received cash from someone and is now a debtor . Since this is a liability its included in credit amount. Or the other way ? Creditors refers to the company or the one who has lent to the company ? And interest on long term loans is the interest which will be received by the company later . Am i getting all these correct ?
Creditors are either people that have loaned money to the company (and expect it back in the future - hence a liability), or someone that has carried out a service for the company and is waiting payment in some way for the services provided. Either way it is a liability that the company has to take care of in the future. I dont understand the bit about a creditor becoming a debtor, which seems unlikely. Interest can be one of two things (it should be clear from the context). Either interest received by the company on some loan that it has extended (in which case it should be treated as a revenue item) or interest paid on loans or bonds that the company has borrowed (in which case it should be treated as an expense). It is more commonly the latter in CT2 I find.
