Posted in Finance, Accounting and Economics Terms, Total Reads: 267
Definition: Debit Ticket
A debit ticket is a notification in a bank general ledger of a payment or deposit made in the account of a customer regarding a cheque that has not been cleared from the corresponding bank. Once the check gets cleared, the notation has to be removed and a credit has necessarily to be applied to the account of the customer.
It may also be put in other terms, as an accounting entry which has to be noted and recorded as a debit acknowledging that some amount of money is owed as a liability by the bank which has to be paid soon. When the cheque is cleared or payment is received a corresponding credit entry has to be done to cancel the debit already made.
An illustrative example explaining the concept of ‘Debit Ticket’ can be – There is a bank named ABC Bank which processes a cheque which had to be deposited into a customer's (Mr Mehta) bank account. The bank would treat the cheque as a cash or a cash equivalent item and would credit the funds to the customer's account writing a debit ticket, charged to the general ledger, while it waits to receive payment from the bank account against which the cheque was written. Once the payment is confirmed or the cheque is cleared a credit entry is done by the ABC Bank in the account of Mr Mehta.