Debit
What is a debit in bookkeeping?
Debit is the left side of an account.
Assets and expenses go up on the debit side.
Liabilities, capital and income go down on the debit side.
Example
A customer pays a bakery £450.00. Money has come in and Bank is an asset, so Bank is debited with £450.00.
Why it matters
Debit is only a side. Which way it moves an account depends on what kind of account it is, so the kind has to be known first.
Practise it
Practise it nowDebit and credit
Ledger Drill is practice, not tax or accounting advice. If this looks wrong, tell us at [email protected].