Financial Accounting has its origin in the ‘Principle of Duality’. This principle says that each and every business transaction that is written in accounts books has an effect that is twofold. In other words, every transaction has to involve at least 2 accounts while being recorded in Account books. For example, Shaw Pvt. Ltd. buys 5,000 units of Raw Material worth Rs 5 lakhs for its business. In this transaction, Shaw Pvt. Ltd. is receiving raw material in exchange of cash worth Rs 5 Lakhs. To put it otherwise, raw material is coming into the… Read

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