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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
Justify the following:
Every transaction is recorded in at least three accounts.
This concept assumes that the business will continue to exist for a long time in the future.
According to this principle, revenue is deemed to be realised when the goods have been transferred or the services have been rendered to a customer.
What is business entity concept of accounting?
Accounts should disclose all material information (with reference to the concept of accounting). Justify either for or against by giving two reasons.
Discuss in brief the basic principles of accounting.
"The capital provided by the owner is treated as a liability of the firm." Explain the concept on which the above depends.
Explain the money measurement principle of accounting.
Explain Accounting Period Concept.
Explain the principle of consistency.
