The accounting equation

Relate assets, liabilities and owner’s equity.

Understand the idea

In the basic accounting equation, assets equal liabilities plus owner’s equity. Rearrange to find the missing quantity. These are educational arithmetic examples.

See a worked example

If assets are ₹50,000 and liabilities are ₹20,000, equity is ₹30,000.

A useful check

Equity is assets minus liabilities; it is not the same as revenue.

Try a fresh practice set

Five questions with feedback on every answer. New sets can repeat familiar ideas so you can practise again. This is practice, not a certified assessment.

Number range / challenge

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