Dual Aspect Concept | Accounting

It is correctly said that, “Accounting was born without prior notice and brought up in negligence”. It means accountancy was first practiced and its principles (that is, rules and guidelines) were developed later on. Copy the link given below and paste it in new browser window to get more information on Dual Aspect Concept:- http://www.transtutors.com/homework-help/accounting/accounting-basics-dual-aspect-concept/

1. DUAL ASPECT CONCEPT

2. Principles of double entry accounting

3. ACCOUNTING PRINCIPLES Accounting principles can be subdivided into two categories: ·         Accounting Concepts ; and ·         Accounting Conventions .

4. ACCOUNTING PRINCIPLES Accounting Concepts The term ‘concept’ is used to connote accounting postulates, that is necessary assumptions and conditions upon which accounting is based.

5. Business Entity Concept Money Measurement Concept Cost Concept Going Concern Concept Dual Aspect Concept Realization Concept Accounting Period Concept Accounting Concepts

6. ACCOUNTING CONVENTIONS Convention of Consistency Convention of Disclosure Convention of Conservation

7. Dual Aspect Concept Each transaction has two aspects, that is, the receiving benefit by one party and the giving benefit by the other. This principle is the core of accountancy.

8. For example, the proprietor of a business starts his business with Cash Rs.1,00,000/-, Machinery of Rs.50,000/- and Building of Rs.30,000/-, then this fact is recorded at two places. That is Assets account (Cash, Machinery & Building) and Capital accounts. The capital of the business is equal to the assets of the business.

9. Thus, the dual aspect can be expressed as under Capital + Liabilities = Assets or Capital = Assets – Liabilities

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