Accounting for IGCSE & O level - Advanced Principles (Section 7 - No. 38)

What does the duality principle state?

Every transaction affects the profit and loss statement.

Every transaction has two aspects and should be recorded in the double-entry accounts of the business.

Every transaction affects the cash flow statement.

Every transaction must involve a monetary value.

The duality principle is the basis of double-entry bookkeeping, stating every transaction has two aspects: a debit and a credit.