AccountancyCLASS 11CBSE
answered 23 Jun 2026Define Dual Aspect Principle.
A.VERIFIED ANSWERfact-checked by tutors
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