Features of Dual Concept of Accounting
Dual Concept of Accounting has some basic features. These features are explained as:
1. Double Entry System: Each transaction involves two entries, a debit entry and a credit entry. The dual concept states that every financial transaction impacts at least two accounts in opposite ways, one account is debited and another account is credited by the same amount.
2. Equality: The total debits must always be equal to the total liabilities, ensuring that the accounting equation is balanced.
3. Permanent Record: Every transaction is recorded in the books of accounts, creating a permanent and verifiable record of financial reporting.
4. Accuracy: The dual concept of accounting helps in detecting errors and ensures accuracy in financial statements.
5. Consistency: It provides a standardised and consistent method for recording transactions, facilitating easy comparison.