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

Assertion (A): In double entry accounting, every transaction affects and is recorded in at least three accounts.
Reason (R) : When recording each transaction, the total amount debited must equal to the total amount credited.

Assertion (A) is false but Reason (R) is true

The correct answer is option 4- Assertion (A) is false but Reason (R) is true.

Assertion (A): In double entry accounting, every transaction affects and is recorded in at least three accounts. This is false as transaction recorded in atleast 2 accounts not 3.
Reason (R) : When recording each transaction, the total amount debited must equal to the total amount credited. This is true.

Every transaction involves give and take aspect. In double entry accounting, every transaction affects and is recorded in at least two accounts. When recording each transaction, the total amount debited must equal to the total amount credited. In accounting, the terms — debit and credit indicate whether the transactions are to be recorded on the left hand side or right hand side of the account. In its simplest form, an account looks like the letter T. Because of its shape, this simple form called a T-account. The T format has a left side and a right side for recording increases and decreases in the item. This helps in ascertaining the ultimate position of each item at the end of an accounting period. For example, an account of a customer- all goods sold shall appear on the left (debit) side of customer’s account and all payments received on the right side. The difference between the totals of the two sides called balance shall reflect the amount due to the customer. In a T account, the left side is called debit (often abbreviated as Dr.) and the right side is known as credit (often abbreviated as Cr.).