Simple English definitions for legal terms
Read a random definition: family-partnership rules
Debit: When you owe money or something is taken away from what you have, it is called a debit. In bookkeeping, it is when you write down an increase in what you own or a decrease in what you owe on the left side of a book. If you have a debit balance, it means you still owe money.
Definition: Debit refers to a sum of money that is owed or due. In bookkeeping, it is an entry made on the left side of a ledger or account, indicating an increase in assets or a decrease in liabilities. It can also refer to an account balance that shows that something is still owed to the account holder.
These examples illustrate how debit is used in different contexts. In the first example, the use of a debit card results in an immediate deduction of funds from the account. In the second example, a company uses a debit entry to record the purchase of new equipment. In the third example, a payment is made towards a credit card balance, resulting in a debit entry for the remaining balance.