I.   Introductory Provisions

Debits are the sixteenth of thirty-three (33) Administrative Elements of Trust being an Accounting computation of a deduction of numbers to a particular type of Account within a Ledger associated with the posting of Journal entries and general practices of Accounting.

The term Debit is not to be confused with the calculations determined under a posting into a Journal. A Debit is a calculation of deduction from the total number reflected in a particular Account (which itself may be a Credit or Debit type Account) when posting a Journal entry into Ledger entries.

The confusion over Debit calculations is compounded with the issue of Venetian Bankruptcy Accounting which from the 16th Century mirror reverses and therefore corrupts the true notion of how to treat Asset, Liability, Revenue, Expense and Capital Accounts:

(i) Under a non-bankrupt Trust, or Estate or Fund, an Liability Journal entry would be treated as an Credit (increase) in an associated Debit type account and a Debit (decrease) in an associated Credit type account; but

(ii) Under Venetian Bankruptcy Accounting, the treatment would be reversed, leading in many cases to confusion.