Answer Wiki. Dual effect accounting being one of the fundamentals of accounting means that each and every transaction entered into by any business enterprise has two aspects namely debit and credit, thereby two effects on the books of accounts. Only by recognizing both the effects in the books, they would tally i.e. a fair view may be established to an extent. The Balance sheet which shows sources of funds and application of funds itself answers this question as to why dual effect has to be recognized. An asset may be created by either decreasing another asset or increasing a liability.