Question

explain A=C+L. (ANSWER IN ONE SENTENCE)​

Answer 1

$\rm\huge\purple{Answer :}$

According to dual aspect every transaction has a dual effect receiving aspect and giving aspect .

Accounting equation is developed with the help of dual aspect concept.

$\bf\blue{ \: Assets = Liabilities \: + Capital}$

Due to this,The equation is formed

A = L + C

If assets are increased, there is liability .So, in every transaction there is assets to the firm and liability to firm.

• There are 2 systems of Accounting :

1 ) Double entry system :

• It is based on the dual aspect concept which that for every transaction has 2 aspects. One is receiving aspect (debit) another is giving aspect (credit). This system was developed by Luca pasiola.

2 ) Single Entry system :

• It is not a complete system of maintaining records of business. The single entry system is incomplete. Since, there is no particular system has to be followed.

Answer 2

Answer:

assets = capital + liabilities. due to ... it forms A= C+L...