Question

4. Assets =Liabilities+Capital
according to
aspects.
*
O (a) Full Discloure

O (b) Realisation concepts
0 (c) Cost Concepts
0 (d) Dual Aspect Concept.
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Answer 1

I think option ( b) is the right answer

okay thank

❤ love is a blind

Answer 2

ANSWER :

❖ Option (d) Dual Aspect Concept

• ➺ Assets = Liabilities + Capital is according to Dual Aspect Concept.

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EXPLANATION :

$\: \: \: \: \: \: \: \: \: \:$ ✠ Dual Aspects Concept is the basis for the Double Entry System. Dual Aspects Concept expresses the relationship between Assets, Liabilities and Capital. It says that the Total Assets of a firm is equal to the Total Liabilities and Capital of the firm. This can be expressed as an equation, known as Accounting Equation.

The Accounting Equation is :-

• ★ Assets = Liabilities + Capital

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KNOW MORE :

❒ Dual Aspects Concept :-

• ➮ Dual Aspect Concept is the very foundation of present accounting mechanism which is the Double Entry System of book-keeping as Dual Aspect Concept states that there are Dual or two aspects which is effected by each transaction.

• ➮ According to Dual Aspect Concept, every business transaction has a double effect, i.e., two sides.

• ➮ Dual Aspect Concept expresses the relationship between Assets, Liabilities and Capital that is expressed in the form of equation. The equation for the relationship between Assets, Liabilities and Capital is known as Accounting Equation. The accounting equation is : Asset = Liability + Capital.

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❒ Double Entry System :-

• ➮ The Double Entry System was first evolved by Fra Luca Pacioli.

• ➮ Double Entry System recognises the fact that there are two fold aspects in every business transactions.

• ➮ The basic principle followed under Double Entry System is that every debit must have a corresponding credit. The amount of the debit side must be equal to the credit side.

• ➮ Double Entry System recognizes the fact that there are two fold aspects in every business transaction.