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What is Dual Aspect Concept in accounting ?

The Dual Aspect Concept : Dual Aspect Concept, also known as Duality Principle, is a fundamental convention of accounting that necessitates the recognition of all aspects of an accounting transaction. Dual aspect concept is the underlying basis for double entry accounting system. Explanation In a single entry system, only one aspect of a transaction is recognized. For instance, if a sale is made to a customer, only sales revenue will be recorded. However, the other side of the transaction relating to the receipt of cash or the grant of credit to the customer is not recognized. Single entry accounting system has been superseded by double entry accounting. You may still find limited use of single entry accounting system by individuals and small organizations that keep an informal record of receipts and payments. Double entry accounting system is based on the duality principle and was devised to account for all aspects of a transaction. Under the system, aspects of tran...
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Advantages of Accounting

                      Advantage of Accounting


1. Financial Information about Business : Accounting makes available financial information, i.e., the profit earned or loss suffered and also what are the assets and liabilities of the enterprise.

2. Assistance to Management : The management is responsible for the functioning of the business and has to therfore plan, make decisions and exercise effective control on the affairs of the business.

3. Replace Memory : No businessman can remember everything about his business since human memory has limitations. It is necessary to record transactions in the books of accounts promptly. This will obviate the necessity of remembering various transactions, since on need, the records will furnish the necessary information.

4. Facilitates Comparative study : A systematic record will enable a businessman to compare one year's results with those of other years and locate significant factors leading to the change, if any.

5. Facilitates Settlement of Tax Liabilities : A systematic accounting record immensely helps settlement of income tax, sale tax, gst and duty liabilities since it is a good evidence of the correctness or transactions.
  
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What is Dual Aspect Concept in accounting ?

The Dual Aspect Concept : Dual Aspect Concept, also known as Duality Principle, is a fundamental convention of accounting that necessitates the recognition of all aspects of an accounting transaction. Dual aspect concept is the underlying basis for double entry accounting system. Explanation In a single entry system, only one aspect of a transaction is recognized. For instance, if a sale is made to a customer, only sales revenue will be recorded. However, the other side of the transaction relating to the receipt of cash or the grant of credit to the customer is not recognized. Single entry accounting system has been superseded by double entry accounting. You may still find limited use of single entry accounting system by individuals and small organizations that keep an informal record of receipts and payments. Double entry accounting system is based on the duality principle and was devised to account for all aspects of a transaction. Under the system, aspects of tran...
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