Debit
Debit
Debit (/ˈdɛbɪt/; from Latin debitum, "something owed") is a term used in accounting to denote a transaction that results in an increase in assets or a decrease in liabilities on a company's balance sheet.
Etymology
The term "debit" comes from the Latin word debitum, which means "something owed". This term was first used in the 15th century by Italian merchants and bankers who were developing the double-entry bookkeeping system.
Definition
In Accounting, a debit is an entry recording an amount owed, listed on the left-hand side or column of a general ledger. Debits increase asset or expense accounts and decrease liability, revenue or equity accounts.
Related Terms
- Credit: In accounting, a credit is an entry recording a sum received, listed on the right-hand side or column of a general ledger. Credits increase liability, revenue or equity accounts and decrease asset or expense accounts.
- Double-entry bookkeeping: This is a system of accounting in which every transaction has a corresponding positive and negative entry (debits and credits).
- General Ledger: This is the master set of accounts that summarize all transactions occurring within an entity.
- Balance Sheet: A financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time.
See Also
External links
- Medical encyclopedia article on Debit
- Wikipedia's article - Debit
This WikiMD article is a stub. You can help make it a full article.
Languages: - East Asian
中文,
日本,
한국어,
South Asian
हिन्दी,
Urdu,
বাংলা,
తెలుగు,
தமிழ்,
ಕನ್ನಡ,
Southeast Asian
Indonesian,
Vietnamese,
Thai,
မြန်မာဘာသာ,
European
español,
Deutsch,
français,
русский,
português do Brasil,
Italian,
polski