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प्रश्न
"Every transaction affects at least three accounts." Comment.
उत्तर
- Every transaction affects two accounts and not at least three accounts. Every transaction has two aspects - one is debit and another is credit.
- According to this principle, every business transaction has a double (dual) effect on the business. This double effect can be recognised only by recording both the aspects of every transaction.
- There are two sides of every transaction. If one account is debited, any other account must be credited and vice-versa. The system of recording transactions on the basis of this principle is known as 'Double Entry System'. It is due to this principle that the two sides of the Balance Sheet are always equal.
संबंधित प्रश्न
This concept assumes that the business will continue to exist for a long time in the future.
This principle suggests that every debit has a corresponding and equal credit.
According to this principle, accounts should be prepared in such a way that all the material information required by users of financial statements is clearly disclosed.
According to Business Entity Concept:
What is meant by going concern concept of Accounting.
"The capital provided by the owner is treated as a liability of the firm." Explain the concept on which the above depends.
"Fixed assets should be valued at the market price." Comment.
Write short note on Going Concern Concept.
Explain the complete disclosure principle.
Explain the principle of consistency.
