DUAL ASPECT CONCEPT:
Accounting concept is that every transaction affects two accounts. This is why double entry system of book-keeping came into existence. All business transactions are recorded on the basis of this concept. No transaction is complete without double aspect. This concept is the foundation on which the entire system of book-keeping and accountancy is based.
Effects of this concept:
1.The most advantageous feature is that you can draw a Trial Balance of your ledger accounts as and when required and know your position of business up-to-date.
2.This system gives you the most accurate and reliable position of your accounts.
3.It facilitates you to compare the business performance of a period with figures of a previous period or with last year corresponding period figures.
DISADVANTAGES OF DUAL ASPECT CONCEPT:
1.The accounts can depict the wrong picture when an accountant is not well versed in accounting and debits wrong head of account or entirely reverses a transaction while posting in the ledger accounts.
2.This system requires a number of books to be maintained as compared to the single entry system of book keeping.
Accounting concept is that every transaction affects two accounts. This is why double entry system of book-keeping came into existence. All business transactions are recorded on the basis of this concept. No transaction is complete without double aspect. This concept is the foundation on which the entire system of book-keeping and accountancy is based.
Effects of this concept:
- If one aspect of transaction is recorded and other is ignored, the accountancy record will not indicate true position, hence this concept is of great help in indicating true position of the business.
- During recent period when production has become very fast due to technological advances and complicated affair in large-scale industries, this concept is of utmost use.
- This concept helps in detecting the errors of employees and in having strict control over them.
1.The most advantageous feature is that you can draw a Trial Balance of your ledger accounts as and when required and know your position of business up-to-date.
2.This system gives you the most accurate and reliable position of your accounts.
3.It facilitates you to compare the business performance of a period with figures of a previous period or with last year corresponding period figures.
DISADVANTAGES OF DUAL ASPECT CONCEPT:
1.The accounts can depict the wrong picture when an accountant is not well versed in accounting and debits wrong head of account or entirely reverses a transaction while posting in the ledger accounts.
2.This system requires a number of books to be maintained as compared to the single entry system of book keeping.
But, on the whole, this double entry system of book-keeping is the most popular and the most commonly used system of accounting all over the world.
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