Question

In accountancy why the liability side is in left side or asset is in right

Answer 1

There is an accounting joke from the days when assets and liabilities sat side by side on balance sheets, rather than above each other. It says the left side of the balance sheet (assets) might have nothing right and the right side (liabilities and equity) has nothing left. But they balance.

Answer 2

Owner's equity accounts sit on the right side of the balance sheet, such as common stock and retained earnings. They are treated exactly the same as liability accounts when it comes to journal entries. Debits are decreases in liability accounts.