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प्रश्न
Explain the concept of The Dual Aspect Principle.
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उत्तर
This principle suggests that every debit has a corresponding and equal credit. There must be a giver of benefit and also a receiver of the same. Suppose X purchases a car for ₹ 3,00,000. He will get the car and will pay cash ₹ 3,00,000. So one account (car) will be debited and another account (cash) will be credited with the same amount. This principle has given rise to the double entry system. It is due to this principle that both the sides of the Balance Sheet are equal and the accounting equation is always true, i.e.,
Capital = Assets - Liabilities
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संबंधित प्रश्न
Explain the Business Entity Concept.
According to this concept, a business firm is treated as a unit separate and distinct from its owners.
This principle suggests that every debit has a corresponding and equal credit.
"Firms live forever." Explain with reference to the concept of accounting.
Every transaction has two effects. (with reference to the concept of Accounting). Give a reason either for or against.
"The capital provided by the owner is treated as a liability of the firm." Explain the concept on which the above depends.
"Every transaction affects at least three accounts." Comment.
Explain the realisation principle.
Explain the principle of consistency.
Name any four concepts of GAAP.
