A more thorough explanation:

Definition: A chit is a small piece of paper with writing on it that serves as a voucher for money received or owed. It is usually used for food, drink, or other goods and services.

• At the restaurant, the waiter gave us a chit to sign for our meal.
• The bartender kept all the chits in a box to tally up at the end of the night.
• When I borrowed money from my friend, I wrote a chit to remind myself to pay them back.

These examples illustrate how a chit can be used as a record of a transaction. In the first example, the chit serves as proof of the meal that was ordered and the amount owed. In the second example, the chits are used to keep track of the drinks that were served and the money that was earned. In the third example, the chit is a reminder of the debt that needs to be repaid.