EQUITY = TOTAL ASSETS - TOTAL LIABILITY
Lets understand what a Liability is ?
Liability in common parlance is when a person or an organisation that owes something to somebody.
Bank loan is a liability.
EQUITY = TOTAL ASSETS - TOTAL LIABILITY
Equity is ownership of an asset
Asset is expenditure made to procure items to run the business.
Liability is a debt ( money owned to someone) and obligation towards repayment.