Answer Posted / 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 |
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