Debit: Difference between revisions
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(DR). | (DR). | ||
'' | 1. ''Banking - account balance.'' | ||
In relation to a bank account, a debit balance is one which stands in favour of the bank. | In relation to a bank account, a debit balance is one which stands in favour of the bank. | ||
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'' | 2. ''Banking - account item.'' | ||
An item drawn out of an account, or charged against the account. | An item drawn out of an account, or charged against the account. | ||
'' | 3. ''Accounting - recording.'' | ||
In double entry book-keeping, every accounting transaction is recorded with both a Debit entry and a Credit entry in the accounting records. | In double entry book-keeping, every accounting transaction is recorded with both a Debit entry and a Credit entry in the accounting records. | ||
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'' | 4. ''Accounting - balance.'' | ||
In double entry book-keeping a Debit entry is one made: | In double entry book-keeping a Debit entry is one made: | ||
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5. ''UK tax loan relationship rules.'' | |||
''UK tax loan relationship rules.'' | |||
Any expense, cost, loss or deficit, for example interest payable, arising from a loan relationship. | Any expense, cost, loss or deficit, for example interest payable, arising from a loan relationship. | ||
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* [[Accounting records]] | * [[Accounting records]] | ||
* [[Accruals basis]] | * [[Accruals basis]] | ||
* [[Active]] | |||
* [[Assets]] | |||
* [[Balance]] | |||
* [[Bookkeeping]] | * [[Bookkeeping]] | ||
* [[Credit]] | * [[Credit]] | ||
* [[Credit balance]] | |||
* [[Debtors]] | |||
* [[Debit balance]] | * [[Debit balance]] | ||
* [[Debit card]] | * [[Debit card]] | ||
* [[Debit collection system]] | |||
* [[Debit transfer system]] | |||
* [[Direct debit]] | * [[Direct debit]] | ||
* [[Double entry]] | * [[Double entry]] | ||
* [[Double entry bookkeeping]] | |||
* [[Journal]] | |||
* [[Ledger]] | |||
* [[Loan relationship]] | * [[Loan relationship]] | ||
* [[Net credit/debit position]] | * [[Net credit/debit position]] | ||
* [[Non-trading debit]] | |||
* [[Overdraft]] | * [[Overdraft]] | ||
* [[Overdrawn]] | * [[Overdrawn]] | ||
* [[Trading debit]] | |||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
Latest revision as of 05:28, 20 July 2022
(DR).
1. Banking - account balance.
In relation to a bank account, a debit balance is one which stands in favour of the bank.
The customer owes money to the bank.
Also known as an overdrawn balance.
(Contrasted with a credit, or positive, balance.)
2. Banking - account item.
An item drawn out of an account, or charged against the account.
3. Accounting - recording.
In double entry book-keeping, every accounting transaction is recorded with both a Debit entry and a Credit entry in the accounting records.
Debit balances represent assets or expenses (while Credits represent liabilities, capital or income).
4. Accounting - balance.
In double entry book-keeping a Debit entry is one made:
- To increase a debit balance; or
- To reduce a credit balance.
For example, the book-keeping entry to recognise a cash sale is:
DR Bank
CR Income
If the bank balance is already an asset (DR balance in the account holder's records), the DR Bank accounting entry for the receipt will increase the positive bank balance (asset) in the balance sheet.
But if the bank balance is currently overdrawn, then the DR Bank accounting entry for the receipt will reduce the overdrawn bank balance (liability) in the balance sheet.
5. UK tax loan relationship rules.
Any expense, cost, loss or deficit, for example interest payable, arising from a loan relationship.
See also
- Accounting records
- Accruals basis
- Active
- Assets
- Balance
- Bookkeeping
- Credit
- Credit balance
- Debtors
- Debit balance
- Debit card
- Debit collection system
- Debit transfer system
- Direct debit
- Double entry
- Double entry bookkeeping
- Journal
- Ledger
- Loan relationship
- Net credit/debit position
- Non-trading debit
- Overdraft
- Overdrawn
- Trading debit
