Dual aspect concept - accounting principle, Financial Management

Assignment Help:

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'.


Related Discussions:- Dual aspect concept - accounting principle

What is price earnings ratio, What is the Price earnings (PE) ratio PE ...

What is the Price earnings (PE) ratio PE = Market share price/EPS (no. of times) PE ratio is the most widely quoted investors 'ratio. It demonstrates market confidence in a

Chi square test as a test of independence, Chi Square Test as a Test of Ind...

Chi Square Test as a Test of Independence In real life decision making, managers often have to know whether the differences between the proportions observed from a number of sa

What is unsystematic risks, Q. What is Unsystematic Risks? Unsystematic...

Q. What is Unsystematic Risks? Unsystematic Risks stems from a managerial inefficiency, technological change in the production process, availability of raw material, changes in

Generation of capital projects in the public sector, Question: (a) In t...

Question: (a) In the Strategic Planning Model, describe the various stages involved in the generation of capital projects in the public sector. (b) Outline the life cycle-co

Cash books, Cash Books (Cash Payments and Receipts Journals) Cash books...

Cash Books (Cash Payments and Receipts Journals) Cash books are the names given to the Cash Receipts Journal and the Cash Payments Journal. They are used to record the flow of

Cost of capital, ABC Ltd. Produces electronic components with a selling pri...

ABC Ltd. Produces electronic components with a selling price per of Rs.100. Fixed cost amount to Rs.2,00,000/- 5000 units are produced and sold each year. Annual profits amount to

Funds management, who are the participants in the hedge funds industries

who are the participants in the hedge funds industries

Who owns a credit union? explain, Who owns a credit union? Explain. Cr...

Who owns a credit union? Explain. Credit unions are owned by their members.  When credit union members place money in their credit union, they aren't technically "depositing"

Principle of opportunity cost, Suppose you have recently been contracted as...

Suppose you have recently been contracted as a financial consultant to a London-based engineering company, Alpha Products Plc. The company uses three components as part of their pr

What are the types of theft threats, What are the types of theft threats?  ...

What are the types of theft threats?  Describe the methods to access and overcome theft threats. Types of theft threats - Mass theft, Pilferage theft. Steps to assess threats

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd