Debitabel refers to something that is capable of being debited, meaning an amount can be subtracted from an account or financial record. This term is often used in accounting and finance to describe expenses, charges, or obligations that can be formally recorded and deducted from a balance. The object or transaction is considered 'debitable' if it leads to a reduction in assets or an increase in liabilities. Determining if an item is debitable is crucial for accurate financial reporting and bookkeeping. The context of debitable always reflects a financial transaction. This ultimately leads to the subtraction of an amount from the account.
Debitable meaning with examples
- The new company policy declared certain employee expenses, like business travel and client entertainment, as debitable, allowing for reimbursement through the company's expense system. Every item needed a receipt.
- During the audit, the accountant reviewed all transactions, categorizing those expenditures with supporting documentation as debitable, while others lacking proper records were deemed non-debitable and required further investigation.
- The bank categorized the overdraft fees on the customer's account as debitable, automatically deducting the amount from the account balance, and creating a negative value in the bank's records.
- The software company's new accounting system flagged several transactions as debitable, and the software calculated that all items would reflect correctly on the end-of-year financial statements. The system automated the entire process.
- When creating the budget, the project manager meticulously listed all the potential costs, identifying each item, like contractor payments and material purchases, as debitable, therefore, ensuring all expenditure was accounted for.