Question

Discuss about dual aspect concept of accounting.

Answer 1

This concept is the most basic principle of accounting. This concept states that every transaction has a dual or two-fold effect and should therefore be recorded at two places. At least two accounts will be involved in recording every respective transaction.
For example, the business buys an asset worth Rs 10,000. So now the Fixed Assets of the company will increase by 10,000. But at the same time, the bank or cash balance will reduce by 10,000.