The double entry accounting is based on the values of the debits and credits, for instance, the increase in the credit increases the equity account and liability and debit decreases the equity account and liability. The credit decreases asset account and on the other hand, the debit increases the asset account [3].

        In the case of the double entry accounting the credit and debit category is involved that ensures the balance between the values in the balance sheet. Both the credits and the debits maintain the balance in the firm. Consider the firm is acquiring some assets such as $1000 and the increase in the asset account is observed and the increase can be in the form of the inventories account and the increase results in the form of debit that is mentioned as DR in the inventories [3]. The sheet provides temporarily balance in the credit and for the same size. The transaction from the account is credit for $1000 as long term liability. The transaction provides the firm a chance to borrow the funds of purchase [2].

     Accounting equation of Accounting Misconception

References of Balance sheet equation of Accounting Misconception