Banker’s Terminology
If you have had experience with a bank, you may be confused at this point by the way they use Debits and Credits. This needs to be cleared up before we go any farther.
When a bank says they have "credited" our checking account, they have added money to it. As a result, we have come to expect "credit" to be a positive transaction. When a bank "debits" our account, it means they are taking money out for some reason, a negative transaction. This sounds contrary to the definition we just learned about Debits and Credits.
If we look at these transactions from the bank’s point of view, it will clear up the confusion. Our checking account shows up on the bank’s internal financial statement as a liability for them. That’s because the bank owes us the money we deposited into our checking account. When we make a deposit, their debt to us is increased, so they "credit" our account. When money comes out of our account, they owe us less, so they "debit" our account.