A debit is a feature found in all double-entry accounting systems. Debits are the opposite of credits. Debits represent money being paid out of a particular account; credits represent money being paid in. In a standard journal entry, all debits are placed as the top lines, while all credits are listed on the line below debits. When using T-accounts, a debit is the left side of the chart while a credit is the right side.

Debits and credits are utilized in the trial balance and adjusted trial balance to ensure all entries balance. The total dollar amount of all debits must equal the total dollar amount of all credits. In other words, finances must balance.

A dangling debit is a debit balance with no offsetting credit balance that would allow it to be written off. It occurs in financial accounting and reflects discrepancies in a company's balance sheet, and when a company purchases goodwill or services to create a debit.

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