Debit means an entry recorded for a payment made or owed. A debit entry is usually made on the left side of a ledger account. So, when a transaction occurs in a double entry system, one account is debited while another account is credited. An account is debited either to increase the asset balance or to decrease the liability balance. Usually an expense or any asset addition or a reduce in the revenue, or liabilities are termed as debits.
For example, a small business owner purchases refrigerator for his business. To record the transaction, she debits the Asset account to increase the asset balance and credits the Cash account to decrease the cash balance.
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