Accounting Equation:

It is an accounting formula expressing equivalence of assets and

liabilities in every business transactions.
It is based on the dual concept of accounting.
It is also stated that at any point of time the assets of a business must
be equal to the total of owner’s equity ( i.e., capital and outsider’s claim).
 Assets = Liabilities + Capital
Or
Capital = Assets – Liabilities.
Or
Liabilities = Assets – Capital.
Or
Assets = Total Equity.