Question

what is accounting equation ​

Answer 1

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The fundamental accounting equation, also called the balance sheet equation, represents the relationship between the assets, liabilities, and owner's equity of a person or business. It is the foundation for the double-entry bookkeeping system. For each transaction, the total debits equal the total credits.❤

Answer 2

^Accounting equation show the relation between the assets ,capital and liabilities of the business.

The equation is

Assets= Capital + liabilities

So, Assets shows application of funds of business and capital and liabilities are the way auch funds are acquired. For ex. Bank loan of 500000 will be introduced in the business to acquire assets and caarying out the business. Hence assets are equal to the sum of the capital invested by the entrepreneur and further liabilities incurred by him for acquisition of assets and carrying out the activities of the business.

I hope I have provided you a better explanation towards your query.