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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
According to the ______ Principle of accounting, transactions are recorded on the assumption that the business will exist for an indefinite period of time.
Explain the concept of The Dual Aspect Principle.
______ is the language of business.
This concept assumes that the business will continue to exist for a long time in the future.
This principle suggests that every debit has a corresponding and equal credit.
According to Business Entity Concept:
With reference to the concept of accounting only those transactions are recorded in accounts which can be expressed in terms of money. Justify either for or against.
"Accounting records serve as a source of information to the creditors of an organisation". Comment.
Explain the expense principle.
"The principle of full disclosure and principle of materiality are contradictory." Comment.
