Question

In accounting all business transaction are recorded as having ______________.

• A. Single aspect
• B. Dual aspect
• C. Triple aspect
• D. None of these

Answer 1

Answer: (B)

Dual aspect

Dual aspect is also called as double entry system of accounting. This concept defines that every business transaction will have two effects i.e. debit and credit. For every debit there will be a credit and vice versa.

For example, goods purchased worth Rs.500 for cash will give two effects. One is in purchase of goods account and another is in cash account.
Purchases A/c Dr. 500
To Cash A/c 500