Definition: Debits are part of the most fundamental accounting concepts, representing one of the two sides of every transaction recorded.
Debit is a formal bookkeeping and accounting term that comes from the Latin word debere, which means "to owe".
A debit is an expense, or money paid out from an account, that results in the increase of an asset or a decrease in a liability or owners equity. Debit is the positive side of a balance sheet account, and the negative side of a result item.
In bookkeeping, debit is an entry on the left side of a double-entry bookkeeping system that represents the addition of an asset or expense or the reduction to a liability or revenue. The opposite of a debit is a credit.
In double-entry bookkeeping, debits and credits are kept in separate columns allows for each to be recorded independently from the other minimizing mistakes.
A debit will increase these accounts:
A debit will decrease these accounts:
Balance remaining after one or a series of bookkeeping entries. This amount represents an asset or an expense of the entity.