Which of the following does not follow Dual Aspect?
- a)Increase in one asset, decrease in other.
- b)Increase in both asset and liability
- c)Decrease in one asset, decrease in other
- d)Increase in one asset & capital
Correct answer is option 'C'. Can you explain this answer?
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Dilpreet Singh
Aug 01, 2018 |
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The dual aspect concept states that every business transaction requires recordation in two different accounts. This concept is the basis of double entry accounting, which is required by all accounting frameworks in order to produce reliable financial statements. The concept is derived from the accounting equation, which states that:
Assets = Liabilities + Equity
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Saurabh Shirude
Aug 01, 2018 |
Answer is option C because ,at a time 2 assets will not decrease it is not rule.
The dual aspect concept states that every business transaction requires recordation in two different accounts. This concept is the basis of double entry accounting, which is required by all accounting frameworks in order to produce reliable financial statements. The concept is derived from the accounting equation, which states that:Assets = Liabilities + Equity
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The dual aspect concept states that every business transaction requires recordation in two different accounts. This concept is the basis of double entry accounting, which is required by all accounting frameworks in order to produce reliable financial statements. The concept is derived from the accounting equation, which states that:Assets = Liabilities + Equity
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