What are Debit entries?
Debit entries (Definition)
Debit entries are a specific kind of entry that goes into the accounting journal. Debit entries work in a similar way to credit entries exactly in reverse. To keep an accurate record for your business it is important to understand the way debits and credits work. You will see a debit entry on the left side of the account on a balance sheet. Debit entries will show as an increase in assets and expense accounts. For example, if your business was to take out a loan to purchase some new equipment you enter the purchase as a debit fixed asset while at the same time entering a credit to a liabilities account. A debit entry will show as a decrease in liability, revenue, and equity accounts. For example, if you pay an invoice from accounts payable it will show as a decrease in the balance of the revenue account. Essentially the business finances must always balance.