Please wait...
Contact Us
Need assistance? Contact us on below numbers

For Enquiry

10:00 AM to 7:00 PM IST all days.

Business Inquiry (North)

Business Inquiry (West / East / South)



Thanks, You will receive a call shortly.
Customer Support

You are very important to us

For any content/service related issues please contact on this number


Mon to Sat - 10 AM to 7 PM

Explain the system of accounting which is based on dual aspect concept.

Asked by Topperlearning User 9th June 2016, 12:49 PM
Answered by Expert

Double entry system is based on the dual aspect concept. It is a complete system as both the aspects of transactions are recorded in the books i.e. debit and credit such as receiving of a benefit and giving of a benefit. For every debit, there is always an equal credit. Therefore, in every transaction, one account is debited and the other is credited.

For example, when an enterprise receives cash from bank as loan, it records a debit for an asset account i.e. cash on hand as well as a credit to a liability account which the bank loans. This system is highly useful for both small as well as big business groups.

Answered by Expert 9th June 2016, 2:49 PM
Rate this answer
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10

You have rated this answer /10

Your answer has been posted successfully!

Chat with us on WhatsApp