In accounting, a debit entry in balance sheet results in an increase in assets or a reduction in liabilities.
For example, if a company borrows funds to buy assets, the account entry would involve simultaneous debit of the assets account and credit in the liabilities account.
Why it matters
In accounting, a debit entry decreases a company's liabilities or increases its assets. As per double-entry bookkeeping rules, debit entries must be made on the left side of the ledger and have to be offset against corresponding credits that appear on the right side of the ledger.