Accounting Equation

Calculate Owner's Equity from the fundamental equation

Cash, inventory, equipment, property, etc.
$
Loans, accounts payable, mortgages, etc.
$
Owner's Equity
0
Accounting Equation Breakdown
Assets: 0
Liabilities: 0
Owner's Equity: 0
The Fundamental Accounting Equation:
Assets = Liabilities + Owner's Equity
Rearranged to solve for Owner's Equity:
Owner's Equity = Assets - Liabilities
Understanding the Equation
The accounting equation is the foundation of double-entry bookkeeping. It shows that everything a company owns (assets) is financed either by borrowing (liabilities) or by the owners' investment (equity). This equation must always balance.