Definition, Meaning & Synonyms
debit balance
noun
ˈdɛbɪt ˈbæl.əns
Definition
A debit balance refers to the amount that a person or entity owes in their bank account, accounting ledgers, or credit accounts, indicating a negative balance.
Examples
- If a bank account has a debit balance, it means the account holder has withdrawn more money than is available.
- Businesses often review their financial statements to monitor their debit balances for accuracy.
- A debit balance in an investment account may indicate that funds were borrowed to purchase securities.
Meaning
When the total debits in an account exceed the total credits, resulting in an obligation to repay the owed amount.
Synonyms
- negative balance
- overdrawn balance
- deficit
