Explain what accountants mean by the concept of duality in relation to recording business transactions.

a) Explain what accountants mean by the concept of duality in relation to recording business transactions. b) Knowing that you have some accounting experience, a friend has sought your advice regarding a business he is thinking of purchasing. The balance sheet for the business reports plant and equipment as: Plant and equipment at cost …………………….. $400 000 Less accumulated depreciation ………………….. $150 000 $250 000 Required: Your friend wishes to know what these three figures mean and whether the $250 000 is a reliable indication of the current market value of the plant and equipment. c) Explain the meaning of accrual accounting. Include an example in your explanation.

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