debit entry

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Explanation of "Debit Entry"

Definition:
A "debit entry" is a term used in accounting. It is a record in the financial books that shows money being taken out of an account or that acknowledges amounts that are owed.

Example:

• If a company buys new equipment for $1,000, they would make a debit entry of $1,000 for the equipment expense in their accounts.

Advanced Usage:

In a double-entry accounting system, every debit entry must have a corresponding credit entry. This means that for every amount debited, there is an equal amount credited to another account. This helps maintain balance in the accounting records.

Word Variants:

1. Debit (verb) - To record a debit entry.
   • Example: "We need to debit the account for the monthly subscription fee."
2. Debited (past tense) - The action of making a debit entry.
   • Example: "The account was debited for the transaction."

Different Meanings:

• In banking, a debit can also refer to a type of card (debit card) that allows you to spend money directly from your bank account.
• In a broader sense, "debit" can refer to any amount owed or a negative impact on finances.

Synonyms:

• Charge
• Withdrawal
• Outflow (in terms of cash flow)

Related Idioms and Phrasal Verbs:

• "In the red": This idiom means having a negative balance in an account, which relates to debit entries, as they can indicate money owed.
• "Pay off": This phrasal verb means to repay a debt, which can be related to debit entries when settling amounts owed.

Summary:

A "debit entry" is a fundamental concept in accounting that indicates money going out of an account or acknowledges what is owed.

Academic

Noun

1. an accounting entry acknowledging sums that are owing

Synonyms

• debit