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Accounting is based on the formula of Assets = Liabilities + Owner's Equity.

the DR side of a balance sheet are the Assets while the CR side records Liabilities & Owner's Equity. Hence for the formula to be effective, both side of the balance sheet must be equal (balance).

PS: It's not the asset and liabilities side but rather the Debit and Credit side.

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Q: Why the assets and laibilities sides of balance sheet is equal?
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