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debit

definition

A journal entry recording a subtraction from assets. With cash basis accounting, debits are recorded when a debt or other obligation is paid. With accrual basis accounting, debits are recorded and recognized when a debt or other obligation becomes owed. Compare to Credit.

Related Terms

 • debit column  • journal entry  • directional testing  • credit  • accounting equation  • contra entry  • account balance  • swap rate
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