Question

For example when a capital of the business is 20,000 and the liabilities of the business is 10,000.then after doing the business ,business got 50,000.we know the formula A=C+L how this 50000 will be equal to 20,000+10,000.here my question is that how the money earned that is the asset which includes profit will be equal to the capital and liabilities.I need a explained answer whith an suitable example.

Answer 1

20000+20000+10000=50000.

that simple