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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 Single entry accounting system has been superseded by double entry accounting.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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Branches of Accounting

                     Branches of Accounting

The changing business scenario through centuries has given rise to specialized branches of accounting which could cater to the changing requirements. These branches are :

1. Financial Accounting

Financial Accounting is concerned with recording financial transactions,summarizing and interpreting them and communicating the results to users. It ascertains profit earned or loss suffered during a period (usually a year ) and the financial position on the date when the accounting period ends.

2. Cost Accounting 

the limitation of financial accounting in respect of information relating to the cost of products or services led to the development of a specialized branch i.e., Cost Accounting. It ascertains the cost of products manufactured or services rendered and helps the management in decision making (say price fixation ) and exercising controls.

3. Management Accounting

Management Accounting is the most recently developed branch of accounting .It is concerned with generating accounting information relating to funds, costs, profit,etc., as it enables the management in decision making. We may say that Management Accounting addresses the needs of  a single user group, i.e.,the management.
   
 
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System of Accounting

                        Systems of accounting The system of recording transactions in the books of accounts are classified into two types : 1. Double Entry System  The Double Entry System of accounting was developed in the 15th century in Italy by Lucas Pacioli. Under the system, every transaction has two aspects--Debit and Credit and at the time f recording a transactions, It is recorded once on the debit side and again on the credit side.  2. Single Entry System  Single Entry System of recording transactions in the books of accounts, may be defined as a system, which is an incomplete double entry system. In this system , all transactions are not recorded on the double entry basis. As regards some transactions,both aspect of the transactions are recorded, as regards others, either one aspect is recorded or not recorded at all. Instead of maintaining all the accounts, only personal accounts ...
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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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Basic Accounting Terms

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