Debit Entries

Debit Entries (Definition)

Debit entries are accounting entries that increase assets or expenses, or decrease liabilities, income, and equity.

Key aspects of debit entries include:

1. Recorded on the left side of a T-account
2. Fundamental to double-entry bookkeeping system
3. Increase balances in asset and expense accounts
4. Decrease balances in liability, equity, and revenue accounts
5. Must be balanced by corresponding credit entries
6. Used in creating journal entries for various financial transactions
7. Essential for maintaining the accounting equation and preparing financial statements

Proper understanding and application of debit entries are crucial for accurate financial record-keeping and reporting.