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प्रश्न
"Every transaction affects at least three accounts." Comment.
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उत्तर
- Every transaction affects two accounts and not at least three accounts. Every transaction has two aspects - one is debit and another is credit.
- According to this principle, every business transaction has a double (dual) effect on the business. This double effect can be recognised only by recording both the aspects of every transaction.
- There are two sides of every transaction. If one account is debited, any other account must be credited and vice-versa. The system of recording transactions on the basis of this principle is known as 'Double Entry System'. It is due to this principle that the two sides of the Balance Sheet are always equal.
संबंधित प्रश्न
The retirement of manager of the company cannot be recorded in the book of accounts, because it is not possible to estimate the financial effect of retirement. Which accounting principle would be applicable for the above statement?
Explain the concept of The Dual Aspect Principle.
According to this principle, accounts should be prepared in such a way that all the material information required by users of financial statements is clearly disclosed.
The capital provided by the owner is a liability of the firm. Answer with reference to the concept of Accounting.
Discuss in brief the basic principles of accounting.
Explain matching principle of accounting.
Explain the revenue principle.
Explain the expense principle.
Explain the realisation principle.
Name any four concepts of GAAP.
