Dual aspect concept is important concept in the accounting fundamentals, unless this concept is not followed accounts is incomplete. The dual aspect concept indicates that each transaction made by a business needs to be recorded in two separate accounts. The economic resources of an entity or organisation is known as assets. Q1] Which accounting concept satisfy the valuation criteria A] Going concern, Realisation, Cost b) Going concern, Cost, Dual aspect c) Cost, Dual aspect, Conservatism d) Realisation, Conservatism, Going concern. The Dual Aspect concept signifies that every business transaction involves a two-fold aspect—(a) the yielding of benefit and (b) the giving of the benefit. Thus, a firm sells goods worth $100, the two simultaneous implications on the seller are (1) forgoing goods worth $100 and (2) receipt of cash $100. Assets are … All business transactions recorded in the accounts books have two aspects – i.e., one is receiving benefit and other is giving benefit. The key points are All transactions have two(2) dimensions and. Explanation. Dual Aspect Concept – This accounting concept states that there are two aspects of each and every transaction that is debit and credit of equal amount. Double entry is the fundamental concept underlying present-day bookkeeping and accounting. Double-entry accounting is based on the fact … For instance, an acquired asset is added to the asset side of the balance sheet while the debt used to acquire the asset is added to the liability side.

Dual Aspect Concept (duality) Every transaction will affect two items in the business – this is represented by both a debit AND a credit entry in the ledger. Dual aspect concept is the underlying basis for double entry accounting system. The basic idea is that the assets that remain after deducting liabilities are considered as claimed by equity investors.

This dual aspect concept is also called Double Entry Methodology. This concept is the basis of double entry accounting , which is required by all accounting frameworks in order to produce reliable financial statements . Dual Aspect Concept is the core of the double-entry bookkeeping. These accounts form a basis of double-entry accounting and other financial accounting which is used to generate reliable financial statements.. Dual Aspect Concept – meaning, definition with examples By Raju Choudhary Last updated May 27, 2020 0 Dual Aspect Concept – Accounting is a language of the business. This concept is the outcome of the entity concept. Dual Aspect Concept. this follows from the basic accounting equation which is: ASSETS= LIABILITIES + OWNERS’ EQUITY. Dual Aspect Concept is the basic accounting concept that assets always equal liability plus equity. The economic resources of an entity or organisation is known as assets. It provides the very basis for recording business transactions into the book of accounts. And the claims of various parties against these assets is known as equities. Article shared by. It basically is one of the golden rules of accounting – for every credit, there must be a corresponding debit. Dual Aspect Concept Each transaction has two aspects, that is, the receiving benefit by one party and the giving benefit by the other.