What is a Debit in Accounting?

A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. It is positioned to the left in an accounting entry. In journal entries , a debit may be indicated with the abbreviation “dr.” The reverse of a debit is a credit . In a journal entry, a debit is listed first, after which the credit is listed.

In double entry accounting , the total amount of debits entered in an accounting transaction should match the total amount of credits entered. The result is considered a balanced transaction. If there is an imbalance between the debit and credit totals, then financial statements cannot be produced.

What is a Debit in Banking?

In banking, a debit refers to a deduction in one's bank account, as may occur when a check payment or a bank servicing fee is applied.