Debit

Debit (Definition)

A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account.

Key aspects of debits include:

1. Fundamental concept in double-entry bookkeeping
2. Always recorded on the left side of a T-account
3. Increases asset and expense accounts
4. Decreases liability, equity, and revenue accounts
5. Must be balanced by a corresponding credit entry
6. Essential for maintaining the accounting equation: Assets = Liabilities + Equity
7. Used in creating journal entries and financial statements

Understanding debits is crucial for accurate record-keeping and financial reporting in accounting.