Each Transaction Changes The Balances In At Least Two Accounts

A Business Transaction Affects How Many Accounts Involved In It?

When a Business Transaction takes place, it affects atleast two Accounts involved in a transaction. This is due to the fact that every transaction must have accounts on debit and credit in equal amounts.

So, this is due to the Dual Aspect Concept applied in Accounting otherwise Accounting Equation can’t be equalized.

Due to the equality of balances of accounts in entry, the accounting equation is also remained equal. This is the main characteristic of Double Entry of Bookkeeping in which two fold effects of business transactions are recorded which are equal in monetary values but are on opposite sides i.e., atleast one account is debited and atleast one account is credited with equal amounts.