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The dual effect principle: how it works
Watch the video of our Kaplan tutor talk you through each of these four transactions.
Watch carefully as this is a very important concept!
These are the four examples referred to in the video:
- John started the business by putting £5,000 into the business bank account
- John pays himself £200
- John’s business buys a van for £1,000 cash
- John’s business buys a computer for £500 and promises to pay later (buys on credit)
You can review the video again if you didn’t quite grasp which accounts went up and which went down.
On the next step you’ll have the opportunity to have a go at a few examples for yourself.
This article is from the online course:
Introduction to Accounting and the Accounting System
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This article is from the free online
Introduction to Accounting and the Accounting System
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