"Every transaction is recorded in at least three accounts." Justify this statement.

AGAINST — The statement is incorrect. According to the Dual Aspect Principle, every transaction is recorded in at least two accounts, not three.

Justification — Every transaction has two equal and opposite effects — one account is debited and another account is credited with the same amount. There must be a giver of benefit (credit) and a receiver of the same (debit). For example, if goods worth ₹10,000 are purchased for cash, Purchases A/c is debited and Cash A/c is credited with ₹10,000. This is the basis of the Double Entry System and ensures that the accounting equation Assets = Liabilities + Capital always holds true. Hence the correct statement is "Every transaction is recorded in at least two accounts."