Debit balance

From ACT Wiki
Jump to: navigation, search

1. Financial accounting.

In financial accounting a debit balance is an asset within the balance sheet, or an expense within the profit and loss account (or income statement).

2. Banking.

In banking a debit balance - in the bank's records - 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 in the bank's records. Being a balance standing in favour of the customer.)

See also