Refer to the two statements given below and choose the CORRECT option.

Statement A: While writing the chemical formula of a compound, the total positive and negative charges must balance each other.
Statement B: Balancing valencies ensures that the compound formed is electrically neutral.

The correct option is: Both statements A and B are correct.

Explanation:
Let us analyze both statements step-by-step to understand why they are correct:

Analysis of Statement A:
Chemical compounds are stable, electrically neutral species. When writing the chemical formula of a compound (especially ionic compounds consisting of cations and anions), the sum of the positive charges from the cations and the negative charges from the anions must equal zero. This charge balance is essential to maintain the neutrality of the compound. For example, in magnesium chloride:

The magnesium ion carries a 2+ charge:

${\mathrm{Mg}}^{2+}$

while each chloride ion carries a 1- charge:

${\mathrm{Cl}}^{-}$

To balance these charges, two chloride ions are needed for every magnesium ion, resulting in the neutral formula:

$\mathrm{Mg}{\mathrm{Cl}}_2$

Thus, Statement A is correct.

Analysis of Statement B:
Valency refers to the combining capacity of an element. In ionic compounds, the valency of an atom or group of atoms is closely related to the number of electrons it gains, loses, or shares to achieve a stable state, which determines its charge. When we write chemical formulas, we balance the valencies of the combining elements (often using the crossover method). Because these valencies represent the charges of the respective ions, balancing them directly ensures that the total positive charge equals the total negative charge. This guarantees that the compound formed is electrically neutral. Thus, Statement B is also correct.

Since both statements are factually correct and logically explain the rules of writing chemical formulas, the correct choice is that Both statements A and B are correct.