In recording an accounting transaction in a double-entry system, which of the following must always be true?

• A. The total amount of debits must equal the total amount of credits.
• B. Only one account is affected by each transaction.
• C. Debits must always exceed credits.
• D. Credits must always exceed debits.

Answer: (A)

Verified step by step guidance

1. Understand the concept of the double-entry accounting system: In this system, every transaction affects at least two accounts, and the total debits must always equal the total credits. This ensures the accounting equation (Assets = Liabilities + Equity) remains balanced.
2. Review the options provided in the problem: Analyze each statement to determine its validity based on the principles of double-entry accounting.
3. Evaluate the first option: 'The total amount of debits must equal the total amount of credits.' This is a fundamental rule of double-entry accounting and must always be true.
4. Evaluate the second option: 'Only one account is affected by each transaction.' This is incorrect because double-entry accounting requires at least two accounts to be affected for every transaction.
5. Evaluate the third and fourth options: 'Debits must always exceed credits' and 'Credits must always exceed debits.' Both are incorrect because the total debits and credits must always be equal, not one exceeding the other.