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Debit is a financial term that refers to the recording or deduction of funds from an individual's or an organization's account. It can also represent the amount of money that is owed to a particular entity. Debit transactions are generally associated with reducing or decreasing an account balance.
In accounting, the entry made to record a debit on an account is represented by a positive number, as it signifies an increase in assets, expenses, or losses. Debit entries are commonly used to record cash withdrawals, payments made, or purchases of goods or services. For instance, when purchasing items with a debit card, funds are automatically deducted from the cardholder's bank account, reducing the available balance.
In banking, a debit transaction refers to the reduction of funds from a customer's account to settle payments or withdrawals. When a customer writes a check or uses a debit card to pay for goods or services, the funds are debited from their account.
Additionally, debit can also be employed as a verb, representing the act of making a debit entry or subtracting funds from an account. Similarly, it can be used as an adjective to describe a specific type of card, such as a debit card, which enables customers to make payments directly from their linked bank account.
In summary, debit refers to the process of deducting or subtracting funds from an account, the amount recorded as an owed balance, and the associated transactions.
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• To charge with debt; to enter on the debtor side of an account.
• An entry on the debtor side of an account.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
The word "debit" originated from the Latin verb "debere", which means "to owe". It is derived from the combination of the prefix "de-" (indicating reversal or removal) and "habere" (meaning "to have"). Over time, the term evolved to refer to the action of taking money from an account or owing a debt.
CONDITIONAL PERFECT
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