Explain the concept of dual aspect with example. - Vidyadip

Question

Explain the concept of dual aspect with example.

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Answer

Duality principle is important and fundamental accounting convention. According to Dual Aspect Concept, every transaction has two-fold effect
$(1)$ from the angle of benefit received &
$(2)$ from the angle of benefit given. "Every receiver is a giver & every giver is a receiver". So for proper recording of a business transaction, dual effects are necessary. For recording this two effects in the books of accounts, accounting terminology of debit & credit are used. The structure of accounting is based on this concept of duality & accounting equation & balance sheet equation based on this principle, which is as under: $A = C + L$ (Assets = Capital + Liabilities)
Examples:
$(1)$ Other assets are decreases. e.g. purchase of furniture in cash. In this transaction increase an assets& other assets i.e. cash will be decreases.
$(2)$ Increase in liability e.g. purchase of furniture from Jaishree Furniture Mart. In this transaction an assets i.e. furniture increases & also increases in liabilities due to credit matter.
$(3)$ Increase in capital e.g. owner of the business brings personal furniture in business then increase in furniture & also increase in capital.

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