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Dual Aspects Concepts


Every Transaction in the business has two aspects. One is receiving aspects and another is giving aspects. Two accounts will be affected while recording the transaction.

For e.g. Goods purchased from Mr.X for Cash

Receiving Aspects- goods
Giving Aspects - Cash

Similarly, if Machinery purchased for Rs.1,00,000 on credit

Liability

Amount

Assets

Amount

Creditors

1,00,000

Machinery

1,00,000

This Increases the Assets and Liability
For e.g. If machinery Purchased for Rs. 1,0,00,000 on cash

Liability

Amount

Assets

Amount

   

Machinery

Cash    2,00,000
           1,00,000

1,00,000

1,00,000


This increases the Machinery value, and reduces the Cash value.

Dual aspect concept is commonly expressed in accounting equations.

Where,            Assets = Liability + Assets
                                     (or)
                            Assets = Equities.




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