What is the Accounting Equation? Assets = Liabilities + Equity
If an owner invests one thousand dollars into the business by writing a cheque on his personal bank account and depositing the money into the business bank account, then the Owner Equity account is credited and the bank account is debited. Assets of one thousand will equal Liabilities at zero plus Owners Equity of one thousand.
What is the Accounting Equation? Assets = Liabilities + Equity 
