In double-entry bookkeeping, a debit is an entry on the left side of an account ledger. Debits increase asset and expense accounts; decrease liability, equity, and revenue accounts. Common abbreviation: DR. Despite confusing colloquial use (your bank 'debits' your account = takes money out), accounting debits are simply left-side entries. Examples: paying rent → debit Rent Expense (expense increases); receiving cash from a sale → debit Cash (asset increases). Every transaction has matching debits and credits — total debits always equal total credits. Modern accounting software handles debit/credit mechanics automatically; users only need to categorize transactions correctly.
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Debit
August 22, 2026 · Aditya Gupta
Accounting
Related terms
Accounts Payable
Accounts Payable (A/P) is money a company owes to suppliers for goods or services received but not yet…
Accounts Receivable
Accounts Receivable (A/R) is money owed to a company by customers for goods or services delivered on credit.…
Accrual Accounting
Accrual accounting recognizes revenues when earned (regardless of cash receipt) and expenses when incurred (regardless of cash payment)…
Accrued Expense
An accrued expense is a cost recognized in the income statement before cash is paid — recorded as…
Amortization
Amortization is the systematic allocation of intangible asset cost over its useful life — analogous to depreciation but…
Audit
An audit is an independent examination of a company's financial records, internal controls, and statements — typically conducted…
