The correct answer is (d). Assets + Liabilities = Capital.
The dual aspect concept is a fundamental accounting principle that states that every business transaction has two aspects: a debit and a credit. Debits and credits are equal in value, but opposite in nature. Debits increase assets and expenses, while credits increase liabilities and equity.
In the equation Assets + Liabilities = Capital, assets are the resources that a business owns, liabilities are the debts that a business owes, and capital is the owner’s equity in the business. The equation states that the total value of a business’s assets must equal the total value of its liabilities plus its capital.
Option (a) is incorrect because it states that capital is equal to assets minus liabilities. This is not the case, as capital is equal to assets plus liabilities.
Option (b) is incorrect because it states that liabilities plus expenses are equal to assets. This is not the case, as expenses are not assets.
Option (c) is incorrect because it states that purchases minus expenses are equal to assets. This is not the case, as purchases are not assets.