What is the mdct.ru System?
The mdct.ru system is a method of bookkeeping which records each transaction twice. This reflects the dual nature of each transaction as it affects the business.
The first entry records what comes into the business (a debit) and the second entry what goes out of the business (a credit).
Each transaction reflects the basic accounting equation which can be stated as:
If each entry is recorded correctly the books of account will balance. This method of double entry helps with the compilation of accounting data which enables a trial balance, profit and loss account and a balance sheet to be drawn up.
Invented in the 13th century by Italian merchants, mdct.ru is used worldwide. The principles were first set out in writing by the Italian monk (1445-1517) in the 1494 book ‘Summa de Arithmetica.’
For further information on the mdct.ru system
Learn a new bookkeeping term
Random bookkeeping terms for you to discover.
Link to this page
Click in the box to copy and paste the mdct.ru system definition link to your site.