Question

10.The accounting equation
'asset = capital - liability is part
of which of the following
concepts
1) Business Entity Concept
2) Materiality Concept
3) Historical Record Concept
4) Dual Aspect Concept
​

Answer 1

Answer:

• 4 ) Dual aspect concept.

Dual aspect concept is the foundation or basic principle of Accounting. It provides the very basis of recording business transaction into the book of accounts. The concept states that every transaction has a dual or two fold effect and should therefore recorded at two places. The type of dual effect takes place in case of all business transactions and is also known as duality principle.

The duality principle is commonly expressed in terms of fundamental accounting equation which is as follows :

• Assets = Liabilities + Capital

Equstion States that the asset of a business are always equal to the claims of owners and the outsiders. The claim also called equity of owners is termed as Capital( owners equity ). The 2 fold effect in respect of all transactions must be duly recorded in the book of accounts of the business.

Answer 2

Dual Aspect Concept

​The dual aspect of accounting is an idea that recommends twofold section of each deal while setting up a monetary or bookkeeping report. Otherwise called the duality guideline, the double angle idea includes each exchange being recorded in charge and credit accounts. In this bookkeeping framework, each exchange has an equivalent and comparing impact, for example it influences two records. Each monetary exchange is recorded in two records. Exchanges are recorded in the twofold passage framework as charges and credits.