what is dual aspect?
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Dual aspect
This concept emphasizes the fact that every transaction has a two-fold effect and is commonly expressed in the form of a fundamental accounting equation: Assets = Equities+ liabilities (Claims).
The idea behind this equation is that somebody has a claim on the assets. It may be either the owner(s)’ claims or the creditors’ plus the owner(s)’ claims. As a result of this dual aspect concept, total assets must equal total equities or claims. It is from this relationship that the term “Balance Sheet” is derived.
In simpler words ,
This principle says that both the aspects of every transaction that is, Debit and Credit are accounted for in the financial statements
Hope its useful..!!
This concept emphasizes the fact that every transaction has a two-fold effect and is commonly expressed in the form of a fundamental accounting equation: Assets = Equities+ liabilities (Claims).
The idea behind this equation is that somebody has a claim on the assets. It may be either the owner(s)’ claims or the creditors’ plus the owner(s)’ claims. As a result of this dual aspect concept, total assets must equal total equities or claims. It is from this relationship that the term “Balance Sheet” is derived.
In simpler words ,
This principle says that both the aspects of every transaction that is, Debit and Credit are accounted for in the financial statements
Hope its useful..!!
sujiritha95:
pls mark it as brainliest answer
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