Webster's Revised Unabridged Dictionary · 1913

Defalcation

Defalcation , noun

[Late Latin defalcatio: compare French défalcation.]

1.
A lopping off; a diminution; abatement; deficit. Specifically: Reduction of a claim by deducting a counterclaim; set- off. — Abbott
2.
That which is lopped off, diminished, or abated.
3.
An abstraction of money, etc., by an officer or agent having it in trust; an embezzlement.