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What isdual aspects concept?
Dual aspects concept is also stated as duality principle and has its foundation on the concept of double entry accounting. According to this concept, it is a must for a company to record all their business transactions in 2 different accounts. The basis of this concept is to produce a systematic framework so that the company can create dependable financial statements.
Explanation in accounting term
The concept of dual aspect is based on 1 equation.
Assets = Owner’s equity + Liabilities
- According to this equation, assets define the resources which a company owns.
- Owner’s equity depicts his/her rights.
- Liability showcases creditor’s rights. These rightsdepict debts of a business.
Key role of dual aspects
Through dual aspects concept assignment help service; you will come to know about all the factors that perform a fundamental work on assets and liabilities. Few of those attributes are as follows.
- Increasing and deducting the number of assets and liabilities
- Improving one asset, and at the same perioddeducting the other asset’s number
- Reduction in liability type,side by side ofmaking an increase in the other
- Inflation or increase in the number of assets and capital
- Increase in the number of assets and capital
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Few of the subtopics include:
- Dual effect in accounting
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