Debited and credited are two accounting entries used to record the movement of funds. A debit is an entry that reduces either an asset or a liability, while a credit increases either an asset or liability. Debit entries are shown on the left side of an account ledger, while credit entries are shown on the right side. For example, when you make a purchase from a supplier, the supplier’s account is debited and your account is credited for the same amount. This ensures accurate bookkeeping and helps keep track of business transactions.