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 Single entry accounting system has been superseded by double entry accounting.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...
Accounting Concept
Accounting concept are the basic assumptions or fundamental propositions concerning the economic, political and social environment within which accounting operates. they are generally accepted set of accounting rules based on which transaction are recorded and financial statement prepared. It is important to follow these rules because it will enable the user to understanding the financial statement of the enterprises better, which otherwise would become difficult if not impossible.
Following are the various accounting concepts that have been discussed in the following sections :
- The Business Entity Concept
- The Money Measurement Concept
- The Going Concern Concept
- The Accounting Period Concept
- The Cost Concept
- The Dual Aspect Concept
- The Revenue Recognition Concept
- The Matching Concept
- The Accrual Concept
- The Verifiable Objective Concept
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