CBSE Class 11-commerce Answered

The term trade payable is the amount payable for purchase of goods and services performed. It is the sum of creditors and bills payable.

1. Creditor: A creditor is a person who gives benefit without receiving money immediately but to claim it in future.
2. Bills payable: Bill payable is an exchange bill accepted for the amount of which will be payable on the specified date. It is included in trade payables because bills payable replaces a creditor.