BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -This concept assumes that every transaction has a dual effect, i.e. it affects two accounts in their respective opposite sides. Therefore, the transaction should be recorded at two places. It means, both the aspects of the transaction must be recorded in the books of accounts.

Detailed explanation-2: -What is Dual Aspect Concept in Accounting? As per double entry accounting, it is known that any transaction of a business is recorded in two separate accounts. The dual aspect concept indicates that each transaction made by a business impacts the business in two different aspects which are equal and opposite in nature.

Detailed explanation-3: -Also known as duality principle, dual aspect concept involves every transaction being recorded in debit and credit accounts. In the Double Entry accounting system, every transaction has an equal and corresponding effect, i.e. it affects two accounts. Every financial transaction is recorded in two accounts.

Detailed explanation-4: -Examples of the Dual Aspect Concept Issue an invoice to a customer. One part of the entry increases sales, which appears in the income statement, while the offset to the entry increases the accounts receivable asset in the balance sheet.

Detailed explanation-5: -Double Entry System of Accounting means every business transaction involves at least two accounts. In other words, every business transaction has an equal and opposite effect in minimum two different accounts. Thus, this system of accounting is based on the Dual Aspect Concept of accounting.