Ask a Teacher

Debit Definition

In accounting, a debit is entered on the left column. A debit can increase or decrease an account depending upon the type of account that is affected. Expense and asset accounts are increased when a debit is entered while liability, owner's equity, and revenue accounts are decreased with a debit entry.

Credit Definition

Credits are entries made on the right hand side of the two column double-entry accounting system. Liabilities, owner's equity and revenue accounts are increased with a credit entry, while assets and expenses decrease with a credit.