Question
Explain the following:
Dual Aspect Concept.

Answer

Dual Aspect Concept: According to the Dual Aspect Concept, every transaction entered into by an enterprise has two aspects, a debit and a credit of equal amount. Simply stated, for every debit there is a credit of equal amount in one or more accounts. It is also true vice versa. lior example, Rahul starts a business with a capital of 1,00,000. There are two aspects to the transaction. On one hand, the business has an asset of 1,00,000 (cash) while on the other hand, it has a liability towards Rahul of 1,00,000 (capital of Rahal). Thus, we can say,
Capital (Equities) = Cash (Asset)
1,00,000 = 1,00,000

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