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What is Duality aspect?
Duality aspect which is also known as duality principle follows a necessary recognition of accounting transaction including all the aspects. It is the most fundamental convention of accounting that is realized under double entry accounting system.
How is double entry different from single entry?
For an instance, if a company employee realizes a sale in the morning. Let’s say a sales person realize the sale of an Air Conditioner. Under single entry accounting system: only the sales revenue aspect will be generates in the system.
Under double entry accounting system, on the other than, the sales revenue aspect along with the transaction related to the credit receipt of cash will also be taken under consideration. Double entry accounting system reflects the transaction of debit as well as credit aspect in order to realize the sustainable profitability.
Types of transactions:
Under double entry accounting system, there are majorly two types of aspects of transactions:
- Debit: Aspect of transaction that increases the value in assets and expenses and decreases in the value of income, equity and liabilities.
- Credit: Aspect of transaction that increases that increases the value in income, equity and liabilities and decrease in the value of assets and expenses.
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