What is debit?
Each of us had heard the combination of the words "debit and credit" more than once. Many people know about this only that these terms refer to economic, or rather, these are accounting concepts. Let's take a closer look at what a debit is.
Debit along with the loan are a standardized methodological method of accounting, in which there are two types of accounts - active and passive.
An active account is a hosted company funds. In this type of account, the debit acts as a flow of funds, a loan as an expense.
Passive account shows the funds raised. Everything is different here - the loan represents a parish, and the debit, respectively, the expense.
The debit is located on the left side of the account. There are also the following concepts directly related to this term:
- A debit balance is a monetary valuation of the value of a company’s property and property rights at a particular point in time.
- The debit turnover is the total monetary value of all business transactions for a certain amount of time.
You can also hear the term "debit posting".In fact, it does not have an independent value, and is used only when the debit of the account that is affected is implied.