What is the meaning of debit?
Debit means left or left side. For example, every accounting entry will have a debit and credit amount. The debit amount is usually listed first and will be entered on the left side of the general ledger account indicated. (The credit amount will be entered on the right side of another account.) The general ledger accounts will have both a debit and credit side, or left and right side. The balance in a general ledger account will be either a debit balance or a credit balance.
Asset accounts, expense accounts, and the owner’s drawing account are expected to have debit balances. These debit balances will be increased when additional debit amounts are entered.
To illustrate the above, let’s assume that a company has cash of $500. The company’s general ledger asset account Cash should indicate a debit balance of $500. If the company receives an additional $200, a debit entry will be made and will result in the Cash account having a debit balance of $700.
Sometimes the word charge is used in place of debit. For example, if a company does advertising of $900, the accountant will charge Advertising Expense for $900.
The accepted abbreviation for debit is dr.
Learn more about Debits and Credits.
About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years.He is the author of the 2010 Master Accounting Download Package which has been praised for it's ability to simplify accounting in a way that anybody can understand.
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what is the meaning of debit and credit . debit means whcih shown as a expense and credit whcih amount comes in it is correct or not. please tell me
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Debit means all expenses and losses are we have to take debit side and credit means all incomes and gains we have to credit side.
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actual meaning of misc. expense (Assets) in Tally.
why it is Asset
What a perfect definition of debit.I like it.God bless
To illustrate the above, let’s assume that a company has cash of $500. The company’s general ledger asset account Cash should indicate a debit balance of $500. If the company receives an additional $200, a debit entry will be made and will result in the Cash account having a debit balance of $700.
In the above which golden rules is used. As i understand debit all the expeses & credit gains. This is just the oposite in case of above example.
the cash is being debited which as per golden rule should be credited
I dont think the question of “What is the meaning of debit?” was answered. Its illustrated how to see a debit but what is it exactly. If i can remove cash from a bank account why is that a credit to the account and not a debit yet to apply that cash to an expense why is the expense debited and not credited. i think he needs to answer the question of “What is the meaning of debit?”
The explanations are quite comprehensive. Good work.