Difference b/w Debt and Borrowings with example

The terms Debt and Borrowings are often used interchangeably, but they have slight differences, especially in accounting, finance, and economics contexts. Here's the clear distinction: Aspect Debt Borrowings Meaning Debt is a broader term that refers to any amount of money owed by one party to another. Borrowings are a specific type of debt where money is borrowed from an external party. Scope Includes all liabilities like borrowings, bonds, debentures, trade payables, etc. Specifically refers to loans or funds borrowed from banks, financial institutions, or individuals. Source Can be from suppliers (credit), bonds, loans, or other obligations. Mainly from banks, financial institutions, or other lenders. Example - Loan from a bank - Bonds issued - Supplier credit (Accounts Payable) - Bank Loan - Loan from a financial institution - External borrowings like World Bank loan Usage in Balance Sheet Shown under liabilities (includes borrowings + other debts) Shown specifically under "Borrowings&quo…