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 “ Every debit must have a corresponding credit.” Explain.

Dear Student,

According to Dual Aspect Concept, every transaction has two aspects, a debit and a credit of equal amount. In simple words, for every debit there is a credit and vice versa. For example, If we purchase a building for Rs 20,000. There are two aspects to the transaction. On one hand, asset is increasing (Building) while on the other hand asset is decreasing (cash). So, we can conclude that every debit has a corresponding credit.

Regards

  • 24
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GTHY
  • -4
Yes because in every transaction credit and debit both are equal.for example - rajesh bought a pen of Rs.50
He get a pen in return of cash.
So purchases is debited and cash is credited as he recieves pen and the debit is the receiver and cash is credited as credit is the giver and he gives cash
  • 6
This is because, every transaction, even in our day to day lives have a dual aspect if you purchase a good , your purchase a/c is debited whereas at the same time the shopkeepers sales a/c is credited. Your cash a/c is credited whereas at the same time shopkeepers cash a/c is debited.
  • 2
sfgnn 
  • -6
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