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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
  • Principles related to duality
  • Mechanism of this concept

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