What Is a Debit?
A debit is an accounting entry recorded on the left side of an account that increases assets or expenses and decreases liabilities, equity, or revenue. Every transaction in double-entry bookkeeping includes at least one debit and an equal, offsetting credit.
What a debit is and why it matters
Debits and credits are the mechanics of double-entry accounting. A debit isn't inherently "good" or "bad" — its effect depends on the account type. For assets and expenses, a debit increases the balance; for liabilities, equity, and revenue, a debit decreases it. The rule that total debits must always equal total credits is what keeps the books in balance and lets the trial balance and financial statements tie out. Mastering the debit/credit rules is the foundation of recording any journal entry correctly.
A worked example
A business buys $2,000 of office supplies with cash. Two accounts move: *Supplies* (an asset) increases with a $2,000 debit, and *Cash* (also an asset) decreases with a $2,000 credit. Debits equal credits, so the entry balances. Later, when the business pays down a $1,000 loan, it debits *Loan Payable* (a liability, decreasing it) $1,000 and credits *Cash* $1,000 — a debit reducing a liability.
How firms handle it today
Bookkeepers apply debit/credit rules on every entry, and the accounting software enforces that debits equal credits, but correct account selection still relies on the preparer's judgment.
Related terms
- Double-entry bookkeeping
- Journal entry
- General ledger
- Credit note
- Trial balance
FAQ
Does a debit mean an increase or decrease?
It depends on the account: debits increase assets and expenses but decrease liabilities, equity, and revenue.
Do debits always equal credits?
Yes — in double-entry bookkeeping, total debits must equal total credits for every transaction, keeping the books balanced.
Is a debit the opposite of a credit?
They're the two sides of every entry. A debit on the left is offset by an equal credit on the right.