15.3.5. Dual Aspect Concept

Try these first

1. 1.

   What does the Dual Aspect Concept imply?

   Hint

   Think about how each entry in accounting has a counterpart.

2. 2.

   Give one example of a dual aspect transaction.

   Hint

   Consider how assets and liabilities might change.

3. 3.

   What does the Dual Aspect Concept ensure?

   • Single entry of transactions
   • Every transaction must affect two accounts
   • Record transactions only in cash

   Hint

   Remember the term dual refers to two aspects.

4. 4.

   True or False: The accounting equation can become unbalanced.

   • True
   • False

   Hint

   Consider what would happen if transactions were not recorded accurately.

5. 5.

   Company A buys a machine for ₹15,00,000 and pays half in cash and half through a bank loan. What are the accounting entries?

   Hint

   Consider both how the company acquires the asset and how it funds the purchase.

6. 6.

   What would happen if Company B forgets to record the credit part of a transaction where they sold goods for ₹20,000 on credit?

   Hint

   Think about what financial health should truly reflect.