What is a Debit?

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.

An overview of debit in accounting

To debit a debtor account implies a reduction of debt
To debit an asset account implies that the assets increase
To debit an income account implies that income decreases
To debit an expense account implies that the cost increases

Increased accounts

A debit will increase these accounts:

Assets (Cash, Accounts Receivable, Inventory, Land, Equipment, etc.)
Expenses (Rent Expense, Wages Expense, Interest Expense, etc.)
Losses (Loss on Sale of Assets, Loss from Lawsuit, etc.)
Sole proprietor's Drawing account

Decreased accounts

A debit will decrease these accounts:

Liabilities (Notes Payable, Accounts Payable, Interest Payable, etc.)
Stockholders' Equity (Common Stock, Retained Earnings)

Debit balance

Balance remaining after one or a series of bookkeeping entries. This amount represents an asset or an expense of the entity.