Definition: A debit is an accounting entry which causes a decrease in assets OR an increase in liabilities or net worth on a company's balance sheet. In double-entry bookkeeping, a debit to one account is a credit to another. On a T-account ledger, debits (abbreviated Dr) are listed on the right-hand side. Debit is the opposite of credit in bookkeeping and accounting.
Common Misspellings: debet
Examples:Company A debits its bank account to pay off a debt to Company B, which reduces that account by the amount of the debt.