Dual aspect term in Accounting ?

Cost-Attach Concept: ...

Accounting Period Concept: ...

Accrual Concept:

1. Entity Concept:

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For accounting purpose the “business” is treated as a separate entity from the proprietor(s). One can sell goods to himself,, but all the transactions are recorded in the book of the business. This concepts helps in keeping private affairs of the proprietor away from the business affairs. E.g. If a proprietor invests Rs. 1,00,000/- in the business,

The dual aspect concept states that every business transaction requires recordation in two different accounts. This concept is the basis of double entry accounting, which is required by all accounting frameworks in order to produce reliable financial statements.

it is deemed that the proprietor has given Rs. 1,00,000/- to the “business” and it is shown as a “liability” in the books of the business. Similarly, if the proprietor withdraws Rs. 10,000/- from the business, it is charged to them.

2. Dual Aspect Concept:

As per this concept, every business transaction has a dual affect. For example, if Ram starts business with cash Rs. 1,00,000/- there are two aspects of the transaction: “Asset Account” and “Capital Account”

As per this concept, every business transaction has a dual affect. For example, if Ram starts business with cash Rs. 1,00,000/- there are two aspects of the transaction: “Asset Account” and “Capital Account”

The concept is derived from the accounting equation, which states that:

The business gets asset (cash) of Rs. 1,00,000/- and on the other hand the business owes Rs. 1,00,000/- to Ram.

The accounting equation is made visible in the balance sheet, where the total amount of assets listed must equal the total of all liabilities

3. Going Business Concept (Continuity of Activity):

It is assumed that the business concern will continue for a fairly long time, unless and until has entered into a state of liquidation. It is as per this assumption,

One part of most business transactions will have an impact in some way on the balance sheet, so at least one part of every transaction will involve either assets, liabilities, or equity. Here are several examples:

that the accountant does not take into account the forced sale values of assets while valuing them.

Issue an invoice to a customer. One part of the entry increases sales, which appears in the income statement

4. Money measurement concept:

As per this concept, in accounting everything is recorded in terms of money. Events or transactions which cannot be expressed in terms of money are not recorded in the books of accounts,

while the offset to the entry increases the accounts receivable asset in the balance sheet. In addition, the change in income triggered by the increase in sales appears in retained earnings, which is part of the equity section of the balance sheet.

even if they are very important or useful for the business. Purchase and sale of goods, payment of expenses and receipt of income are monetary transactions which are recorded in the accounting books

however events like death of an executive, resignation of a manager are such events which cannot be expressed in money.

5. Cost Concept (Objectivity Concept):