The dual Aspect concept states that every financial transaction has twofold effects. These two aspects always have equal effects. In simple terms, we can state that for every debit there exists a credit.

**Dual Aspect Concept Examples**

For example, Mr. A started his business with an amount of Rs 1,00,000; this will result in an increase in the cash balance on the asset side by Rs 1, 00,000. Due to the operation of duality, the owner’s equity or capital will also increase by an equal amount. We can observe here that the two items that got affected are cash and capital account.

In a similar way, let’s suppose Tom bought goods worth Rs 50,000 on credit then on one hand his assets will increase by Rs 50,000 while on the other hand, his liabilities will also increase by Rs 50,000.

Hence the duality principle can be expressed in terms of fundamental Accounting Equation which can be written as follows: Assets = Liabilities + Capital

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