BANK DEBITS Meaning and
Definition
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Bank debits refer to the transactions in which funds are deducted or withdrawn from a bank account. It is an accounting term that represents the reduction in the account balance. Bank debits can occur through various mechanisms such as checks, electronic transfers, automatic bill payments, ATM withdrawals, or direct debits.
When a customer writes a check to make a purchase or pay a bill, the bank debits the respective amount from the customer's account. Similarly, when a customer uses their debit card to make a purchase, the bank debits the purchase amount from the account. Electronic transfers, like wire transfers or online banking transactions, also result in bank debits.
Bank debits are reflected in the account statement, indicating the specific date and amount of each transaction. The statement provides a detailed record of all the debits made to the account during a specific period, assisting the account holder in keeping track of their spending and available funds.
It is important to differentiate bank debits from bank credits. While debits represent fund deductions or withdrawals, credits reflect fund additions or deposits to an account.
Overall, bank debits play a vital role in tracking transactions and managing the financial activity within a bank account, ensuring accurate record-keeping and providing customers with insights into their account balance.
Common Misspellings for BANK DEBITS
- bank debitr
- bank debit
- vank debits
- nank debits
- hank debits
- gank debits
- bznk debits
- bsnk debits
- bwnk debits
- bqnk debits
- babk debits
- bamk debits
- bajk debits
- bahk debits
- banj debits
- banm debits
- banl debits
- bano debits
- bani debits
- bank sebits
Etymology of BANK DEBITS
The word "bank debits" is derived from two different sources, "bank" and "debits".
- "Bank" comes from the Middle English word "banke", which originally referred to a bench or a moneylender's table. It is related to the Italian word "banco" and the French word "banque". In the 17th century, the term "bank" began to be used to describe financial institutions that provided various services, including accepting deposits and granting loans.
- "Debits" comes from the Latin word "debitum", which means "that which is owed". It is the past participle of the verb "debere", meaning "to owe". The word "debit" refers to an entry that represents an amount owed or deducted from an account.
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