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A = L + EE = C + RERE = NI –WNI = R –E E = C + R –E –W A = L + C + R –E –W A = L + C – W + R –EA+E+W = L+C+R
Remember that for every transaction, The Sum of Debits = The Sum of Credits. The left side of the balance sheet must balance the right side: Assets + Expenses = Liabilities + Owners' Equity+ Revenue/Profit.
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