Page 103 - Office Practice and Accounting -9

Duality (Dual Aspect) Concept

The concept of duality recognizes that there are two aspects for each transaction-
represented by debit and credit entries in accounts. The concept is the basis of the
accounting equations:
Assets = Capital + Liabilities.

The equation is also expressed in its other form:
Assets - Liabilities=Capital. Balance sheets are prepared in this form. The accounting
equation is a very useful tool for solving some accounting problems.
Accounting system

There are two systems of accounting:
1. Single Entry System 2. Double Entry System

Single Entry System

The single entry system is not really a system because in some cases record may be one
sided; and in some other cases no record is maintained at all. It is more appropriate to
call it an incomplete system of recording transactions.
In single entry system, scientific principles and uniform system of recording of
transactions is not followed. It is such type of book keeping which has no fixed set
of rules and principles. Thus, this system is incomplete, inaccurate, unscientific and
unsystematic style of account keeping. It does not follow the principles of double
entry system. It is a system of book keeping in which as a rule, the records of only cash
and personal accounts are maintained. It is a method of record keeping which ignores
two fold effects, and fails to provide the necessary information relating to financial
position. In this system, only one aspect of every transaction is usually recorded. So,
it is called single entry system. In this system, personal account of the debtors and
creditors are maintained. Real and nominal accounts are not maintained under it.

According to R.N. Carter– "Single entry is a method employed for recording
transactions, which ignores the two fold aspects and consequently, fails to
provide the businessman with the information necessary for him to be able to
ascertain the position."

According to J.R. Batliboi– "Single entry system is not any particular system
of book-keeping, but rather than double entry system in an incomplete and
disjoined firm."

Office Practice and Accounting 9 99