Debit

In banking and finance, a debit is an accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet. For personal banking, a debit refers to a transaction that reduces the amount available in an individual's bank account. Debits are commonly associated with the use of debit cards, where the cardholder's bank account is directly charged for purchases.

Key Points About Debits:

Debits are crucial for daily financial activities, offering a straightforward and effective way to manage expenditures directly from one's bank account.