Here's a breakdown:
* Debit: A decrease in an account balance, usually due to a withdrawal, payment, or expense.
* Credit: An increase in an account balance, usually due to a deposit or payment received.
Examples:
* "My bank account was debited for the amount of my rent payment."
* "The purchase was debited from my credit card."
* "The company's account was debited for the cost of supplies."
In accounting terms, "debit" refers to the left side of a T-account, which is typically used to record decreases in assets and increases in liabilities and equity.
Understanding debit and credit is essential for anyone managing finances, as it helps you track your income, expenses, and overall financial position.