| It provides the very basis of recording business transactions in the books of accounts. | |
| This concept assumes that every transaction has a dual effect, i.e. it affects two accounts in their respective opposite sides |
| It is commonly expressed in terms of fundamental accounting equation Assets = Liabilities + Capital |
| The knowledge of dual aspect helps in identifying the two aspects of a transaction which helps in applying the rules of recording the transactions in books of accounts.. |
| The implication of dual aspect concept is that every transaction has an equal impact on assets and liabilities in such a way that total assets are always equal to total liabilities |
| Significance– This concept helps accountant in detecting error. |