what do you mean by dual aspect of accounting?
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Answer / anjana.sehgal@gmail.com
Dual Aspect of Accounting means that every transaction that
take place has two aspects one is debit & another is credit
& because of dual aspect of a transaction asset side of
Balance sheet matches with Liabilities side.
The Accounting equation is : Liabilities + Capital= Assets
A dual aspect transaction will impact the asset &
liabilities & accounting equation as follows :
1. Increse in Assets & Increase in Liabilities.
2. Decrease in Assets & decrease in Liabilities.
3. Increase in one Assets & Decrease in another Assets.
4. Increse in one type of liability & decrease in
another type of Liabilities.
5. Increse in Assets & Increase in Capital.
6. Decrease in Assets & decrease in Capital .
Here this equation get balanced after every transaction.
For exp : There is a purchase of Furniture on Credit for
Rupees 10000/-
In this case Asset side will increase by Rs 10000 & the
same time liabilities will also increase by Rs 10000. And
Hence accounting eq. get balanced because of dual aspect of
transaction.
The Same way other transaction will affect the accounting
equation as specified in the above six points
| Is This Answer Correct ? | 45 Yes | 4 No |
Answer / showkath ali
Dual Concept is one of the basic concepts of Accounts.
As per Dual contcept every debit having same and opposit
credit.
There are two types of Accounts 1. Single entry system 2.
Dual entry System.
Companies are prohibited to follow Single entry system.
Accuracy of accounts can be measure by preparing Trail
Balance. Trail balance could be balance only when follow
the dual entry concept.
Suppose:
You start a bussiness by Rs.100000/- you create an entry as
Cash A/C Dr
To Capital Accounts
Due to above entry in trail balance capital account join in
liability side and cash accounts reflects at Assets side.
| Is This Answer Correct ? | 18 Yes | 4 No |
Answer / dev
dual aspect concept is also called Double Entry Methodology
The key points are All transactions have two(2) dimensions
and this follows from the basic accounting equation which is:
ASSETS= LIABILITIES + OWNERS’ EQUITY
Assets are the resources owned by a business
Liabilities are the rights of the creditors, which represent
debts of the business
Owners Equity represents the rights of the owner
| Is This Answer Correct ? | 6 Yes | 2 No |
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