give examples for dual aspect concept
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Mr.A, owns and operates a book store, has identified the following transaction for the month of January that need to be accounted for the in the monthly financial statements
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Example
Mr. A, who owns and operates a bookstore, has identified the following transactions for the month of January that need to be accounted for in the monthly financial statements:
$1. Payment of salary to staff2,0002. Sale of books for cash5,0003. Sales of books on credit15,0004. Receipts from credit customers10,0005. Purchase of books for cash20,0006. Utility expenses - unpaid3,000
Under double entry system, the above transactions will be accounted for as follows:
Account TitleEffectDebitCredit$$1. Salary ExpenseIncrease in expense2,000Cash at bankDecrease in assets2,0002. Cash in handIncrease in assets5,000Sales revenueIncrease in income5,0003. ReceivablesIncrease in assets15,000Sales revenueDecrease in income15,0004. Cash at bankIncrease in asset10,000ReceivablesDecrease in asset10,0005. PurchasesIncrease in expense20,000Cash at bankDecrease in asset20,0006. Utility ExpenseIncrease in expense3,000Accrued expenses decrees
Example
Mr. A, who owns and operates a bookstore, has identified the following transactions for the month of January that need to be accounted for in the monthly financial statements:
$1. Payment of salary to staff2,0002. Sale of books for cash5,0003. Sales of books on credit15,0004. Receipts from credit customers10,0005. Purchase of books for cash20,0006. Utility expenses - unpaid3,000
Under double entry system, the above transactions will be accounted for as follows:
Account TitleEffectDebitCredit$$1. Salary ExpenseIncrease in expense2,000Cash at bankDecrease in assets2,0002. Cash in handIncrease in assets5,000Sales revenueIncrease in income5,0003. ReceivablesIncrease in assets15,000Sales revenueDecrease in income15,0004. Cash at bankIncrease in asset10,000ReceivablesDecrease in asset10,0005. PurchasesIncrease in expense20,000Cash at bankDecrease in asset20,0006. Utility ExpenseIncrease in expense3,000Accrued expenses decrees
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