into the following three ledgers: Trade Debtors / Customers / Sales / Sold Ledger: This ledger contains the personal accounts of the Trade Debtors to whom credit sales are affected. Here Trade Debtors word stands for only those debtors to whom goods are sold. Creditors / Suppliers / Purchase / Bought Ledger: This ledger contains the personal accounts of the Trade Creditors who supply the goods on credit. Here Trade Creditors word stands for only those creditors to whom those goods are sold. General
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ledger is required for recording its transactions which have also expanded with the business. Since the bulk of the entries are made in the accounts of debtors and creditors‚ these two classes of accounts are taken out of the General Ledger and put in separate ledgers - the Sales Ledger for debtors’ accounts and the Purchases Ledger for creditors’ accounts. There may be more than three ledgers but for simplicity‚ we shall limit the ledgers to three for the moment. The use of more than one ledger
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rule‚ belongs to the debtor. Right of choice‚ as a rule‚ given to debtor. GENERAL RULE: The right to choose belongs to the debtor/ obligor Except: When the right has been expressly granted to the creditor Right of choice of debtor not absolute. LIMITATION ON THE DEBTOR’S CHOICE (1) The debtor cannot choose those prestations which are (a) impossible ‚ (b) unlawful ‚or (c) which could not have been the object of the obligation. (2) Only one prestation is practicable (3) The debtor cannot choose part
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Contract Act‚ 1872 deals with the recovery of the sum of money rightfully paid by the surety. The sum assured by the surety to the creditor being paid is divided into two categories: rightfully paid and wrongfully paid. For example‚ as per illustration(a) given with the section‚ when the surety did not pay the sum to the creditor on reasonable grounds‚ but paid it when the creditor sued him‚ it is rightful payment. But‚ as per illustration(b)‚ if there was no reasonable ground for the surety not to pay‚
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Contract can take place: a. Default of the debtor (mora debitoris) i. Explanation Mora Debitoris means that a debtor has failed to adhere to the contractual agreement in a certain time frame. Be it not making a payment or violating agreed conditions of the signed contract. There are two forms of this form of breach of contract that can be distinguished: Mora Ex Re: This occurs when a specific date is set on which the debtor must perform. If the debtor knowingly or unknowingly do not perform on
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Week 1 – Welcome / Introduction to Law I. 1. 2. 3. 4. Introduction to Law Not Not Not Not Divine Law‚ law of religion and faith Natural Law‚ justice‚ fairness and righteousness Moral Law‚ norms of good and right conduct Physical Law‚ order or regularity in nature Sources of Law i) i) Constitution – Fundamental Law of the land ii) ii) Legislations – Passed by Senate and House of Representatives iii) iii) Administrative issuances – Quasi Legislative Functions iv) iv) Jurisprudence – Decisions of the
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2:OBJECTS OF INSOLVENCY LAWS: Prior to the enactment of insolvency legislation‚ a debtor who was unable to pay debts was regarded as sort of criminal or offender and was‚ in almost every case‚ sent to jail. No distinction was drawn between honest an unfortunate debtors on the one hand and dishonest debtors on the other. Insolvency laws were passed to relieve the honest debtor‚ who surrenders for distribution amongst his creditors the property which he owns at the time of bankruptcy‚ from the weight of oppressive
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whereby the latter is bound to the fulfillment of a prestation which the former may demand from him. - Manresa Civil obligation vs Natural obligation Gives to the obligee effect Cannot be or creditor the right enforced by court of enforcing it action against the obligor or debtor in a court of justice. (right of action) Positive law Classifications of obligation Primary •pure and conditional •with a period •alternative and facultative •joint and solidary •divisible
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JAMES MADINSON USES CREDITORS AND DEBTORS AS RICH AND POOR‚ AND THE ROLE OF THE GOVERNMENT IN REGARDS TO MONEY LENDING A creditor is a party that has a claim to the service of a second party. It is a person or institution to whom money is owed. A debtor is an entity that owes a debt to another entity; the entity may be an individual‚ firm‚ a government‚ a company or other legal person. James Madison compares creditors and debtors to the rich and poor because the creditors are the parties which
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which can be determined through this ratio. I. DEBTORS RATIO It represents the number of days required or taken to collect the credit sales which reflects the collection strategy of the company. It measure the collection period of account receivables Debtors Debtors Ratio = --------------------- Credit Sales 2011-12 2012-13 2013-14 Debtors 3340.85 1537.42 1651.31
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