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Define Dual Aspect Principle.

AccountancyClass 11CBSEAnswered 23 Jun 2026
Answer

This principle holds that every transaction entered into by a firm or an institution will have two aspects: if any event occurs, it is bound to have a double effect.

This double effect can be better understood if we remember the business entity assumption under which the firm is considered to be separate from its proprietor.

Owner's equity or capital + claims of outsiders = Assets

Or

Assets = Owner's equity + claims of outsiders

Accountancy · Class 11