Dual aspect concept - accounting principle, Financial Management

Dual Aspect Concept - Accounting Principle

This is, no doubt, the basic concept in accounting.  Under this concept, each transaction has got a two-fold aspect:

(i) yielding to or receiving of benefit and

(ii) giving of the advantages.

For instance, while a firm obtains an asset (receiving of the benefit) it must have to pay cash (giving of the benefit). Therefore, two accounts are to be passed in the books of accounts, one - for receiving the benefit and the other - for giving the benefit. Therefore, there will be a double entry for every transaction - Debit for receiving the advantage and credit for providing the benefit. So, for each and each debit there must be a corresponding credit and vice versa. This is the principle of Double Entry System of accounting which, Instead, known as the 'Dual Aspect Concept'.

Posted Date: 2/6/2013 12:58:27 AM | Location : United States







Related Discussions:- Dual aspect concept - accounting principle, Assignment Help, Ask Question on Dual aspect concept - accounting principle, Get Answer, Expert's Help, Dual aspect concept - accounting principle Discussions

Write discussion on Dual aspect concept - accounting principle
Your posts are moderated
Related Questions
Performance evaluation One can determine this by comparing the cash flow from assets and cost of capital. 1. Cash flow from assets Cash flow from assets is calculated

VK Ltd a multi-product Company, furnishes you the following data relating to theyear 2000.First Half of the year Second Half of the yearSales Rs. 45,000 Rs. 50,000 Total Cost Rs. 4

Pull Strategy Pull strategy define a marketing approach in which a manufacturer promotes a product directly to consumers in the hopes that the consumers will then request

applicability of operating cycle in poultry

What is the investment opportunity schedule (IOS)?  How does it help financial managers make business decisions? The investment opportunity schedule illustrates graphically pro

A. Joe wants to invest in Nebraska Municipal 6% GOB that are rated AA. Joe's tax rate is usually between 28% .  GE plans to sell AA rated 8% coupon bonds. Compute Joe's after-tax i

Default risk is the risk that arises when the issuer is not able to satisfy the terms and conditions of the obligation with respect to timely pa

Task - 01 During its financial year ended 30 June 20x7 Beavers Ltd, an engineering company, has worked on several contracts. Information relating to one of them is given below.

What is the role of investment banking in investment intermediaries? Investment banks: These banks assist corporations or governments into the issue of new debt or equity

If an optimal capital structure exists, what are the reasons why too little debt is as undesirable as is too much debt? Too little debt may be as unwanted as too much debt for