Debit (Noun)
Meaning
An accounting entry acknowledging sums that are owing.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company's accounts receivable listed several outstanding debits from customers who had not yet paid their bills.
- In this transaction, the debit represents the decrease in cash, an asset account, of $100.
- A debit is typically entered on the left side of the ledger and shows the source of the funds.
- The debit to the accounts payable account represents the amount the company owes to its creditors.
- By entering a debit of $500 to the supplies expense account, the accountant properly recorded the purchase in the company's ledger.