The abbreviation for debit is dr., while the abbreviation for credit is cr. Both of these terms have Latin origins, where dr. is derived from debitum (what is due), while cr. is derived from creditum (that which is entrusted). Thus, a debit (dr.) signifies that an asset is due from another party, while a credit (cr.) signifies an obligation to another party.

Debits and credits are used in a double entry recordkeeping system, where every journal entry must include at least one debit and at least one credit. Debits and credits are not used in a single entry system.