State whether the following statements are true or false :

The double entry system is based on “Dual Aspect” concept.

Open in App

Solution

True

Explanation:
The dual aspect concept states that every financial transaction has two-fold effect and affects at least two accounts, i.e. one account is debited and other is credited. Thus, the total of all debits is always equal to the total of all credits. The system of recording transactions, which is based on the dual aspect concept, is called ‘Double-Entry System’.

Suggest Corrections

Similar questions

Q. The double entry system is based on "dual aspect" concept.

Q. State whether the following statement is 'True' or 'False':
In accounting, all business transactions are recorded as having dual aspect.

Q. State with reasons whether the following statement is true or false.
In double account, all business transactions are recorded as having dual aspect.

Double entry system of accounting is based on the principle of 'dual aspect'.Explain the features of double entry system of accounting and also give its benefits.

Q. The system of recording based on dual aspect concept is called _______.

Join BYJU'S Learning Program

State whether the following statements are true or false : The double entry system is based on “Dual Aspect” concept.

State whether the following statements are true or false :

The double entry system is based on “Dual Aspect” concept.