Dual aspect concept says that every transaction in business has dual effect, means there are two aspects of any transaction. One is action of the transaction and other is reason of the transaction. Let us understand this by an example: If, business is paying salary to its employee it is reducing business cash,. This is the action of transaction (reduction in cash) and the reason. We are paying salary amount is expense (means we have availed services of that employee). So, each transaction we are recording in accounting must have followed this concept of dual aspect. Lets us take one more example to clarify our understanding: Bank loan has the one aspect that will increase our asset (cash) but on the other hand. It will also increase our liability, this is second aspect.
Other important topics:
Matching Concept
Going Concern Assumption
Business Entity Concept
Money Measurement Concept
Dual Aspect
