In the question given below, there are 2 statements marked as Assertion (A) and Reason (R). Choose the correct alternative from the following options.

Assertion (A)- The BoP accounting must always be balanced, that is, the total amount of debits must be equal to the total amounts of credits.

Reason (R)- All the transactions in the BoP account is recorded considering the double entry accounting system.

Both (A) and (R) are true and (R) is the correct explanation.

Double-entry bookkeeping is a method of recording transactions where an entry is recorded in at least two accounts as a debit or credit. In a double-entry system, the amounts recorded as debits must be equal to the amounts recorded as credits.