The first relationship, Creditor-Debtor Relationship between a bank and a customer is established when there are cash deposits made by a customer into an account known as the checking account (Clarkson, Miller & Cross, 2016). The creditor is the customer and the debtor in this relationship is the bank. The reason for the customer to be the creditor is that liabilities are the deposits of the customer. The reason for the bank to be the debtor is that the bank is the entity which owes the money to the customer held by the bank for the customer. There can be customer withdrawals any time the customer wants. Therefore, the bank always has to be ready with cash.