infinitybenzo

Spongebob, you need to have an understanding of how the accounts interact. When in doubt: A = L + O.E.

Think of Assets as the property of the business. How did you pay for them? Through either 1) Debt (Liability) or 2) Your own money (O.E).

Forget the example of your bank. That confused me when I was first learning accounting too. Just look at the statement

A=L+O.E
If A went up then L or O.E must have as well.
If A goes down then L or O.E must too.