“For every debit, there is an equal and corresponding Credit”.1. E

1.	“For every debit, there is an equal and corresponding Credit”.1. Explain the statement by citing an example.2. State the relevant accounting principle.
Answer» 1. “Every transaction has dual aspect i.e. debit and credit”. For example Anish started business with Rs. 20,000. The effect of this transaction is that It increases cash (asset) Rs. 20,000. It increases capital Rs. 20,000. The above transaction can be shown in the form of an accounting equation as follows Assets = Liabilities = Capital 20,000 = 0 + 20,000. 2. Duality Principle.

“For every debit, there is an equal and corresponding Credit”.1. Explain the statement by citing an example.2. State the relevant accounting principle.

Answer»

1. “Every transaction has dual aspect i.e. debit and credit”.
For example Anish started business with Rs. 20,000. The effect of this transaction is that

It increases cash (asset) Rs. 20,000.
It increases capital Rs. 20,000.

The above transaction can be shown in the form of an accounting equation as follows Assets = Liabilities = Capital 20,000 = 0 + 20,000.

2. Duality Principle.

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“For every debit, there is an equal and corresponding Credit”.1. Explain the statement by citing an example.2. State the relevant accounting principle.

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