What is a debit ticket?

A debit ticket represents a certain amount owed by a company or an individual. It indicates that a corresponding credit ticket should be matched for balancing the ledger to make a transaction complete. 

Once a debit ticket is assigned, it should have a credit figure to cancel the debit. Let’s dive into a more detailed debit ticket definition for better understanding. 

Debit ticket explained

General ledgers play an important role in both accounting and bookkeeping. They contain all vital financial records related to a business or individual. Financial statements provide information about the company’s health through the parameters of income, expenses, liabilities, assets and revenue. They can all be traced in a general ledger. 

If a company or an individual owes money or assets, a debit ticket is entered in both accounting and bookkeeping, indicating the deduction of money from the account. 

Decades ago, debit tickets were physical documents. They would be cancelled or nullified only after a credit ticket was entered to balance the books. However, with digital ledgers and electronic accounting software, paper-based placeholders have become obsolete. 

Example of debit ticket

Let’s take a look at an example of double-entry bookkeeping. An accountant maintains two separate lists – one for debits and another for credits. 

Now, let’s say a company purchases raw materials costing $100 by writing a check. The bookkeeper would immediately record that on the general ledger, issuing a debit ticket stating that $100 has been spent on the purchase. 

At a later date, or on the date of product delivery, the company will record a credit of $100, listing it on the balance sheet as an asset.