Read the given below two statements and mark the correct answer.

Assertion (A): Under balance method of trial balance, trial balance is prepared by showing the balances of all ledger accounts and then totalling up the debit and credit columns of the trial balance to assure their correctness.
Reason (R) : Total of each side in the ledger (debit and credit) is ascertained separately and shown in the trial balance in the respective columns by preparing trail balance through totals method.

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

The correct answer is option 2- Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

Assertion (A): Under balance method of trial balance, trial balance is prepared by showing the balances of all ledger accounts and then totalling up the debit and credit columns of the trial balance to assure their correctness. THIS IS TRUE.  Balances Method is the most widely used method in practice. Under this method trial balance is prepared by showing the balances of all ledger accounts and then totalling up the debit and credit columns of the trial balance to assure their correctness. The account balances are used because the balance summarises the net effect of all transactions relating to an account and helps in preparing the financial statements. It may be noted that in trial balance, normally in place of balances in individual accounts of the debtors, a figure of sundry debtors is shown, and in place of individual accounts of creditors, a figure of sundry creditors is shown.

Reason (R) : Total of each side in the ledger (debit and credit) is ascertained separately and shown in the trial balance in the respective columns by preparing trail balance through totals method. THIS IS TRUE. Under the totals method, total of each side in the ledger (debit and credit) is ascertained separately and shown in the trial balance in the respective columns. The total of debit column of trial balance should agree with the total of credit column in the trial balance because the accounts are based on double entry system. However, this method is not widely used in practice, as it does not help in assuming accuracy of balances of various accounts and and preparation of the financial statements.

Both statements are true but reason does not explain assertion. Both are methods of preparing of trial balance.