The fundamental accounting equation, also called the balance sheet equation, is the foundation for the double-entry bookkeeping system and the cornerstone of accounting science. Like any equation, each side will always be equal. In the accounting equation, every transaction will have a debit and credit entry, and the total debits (left side) will equal the total credits (right side). In other words, the accounting equation will always be "in balance".

The equation can take various forms, including:

The formula can also be rearranged, e.g.:

According to class 11 NCERT Accountancy books^[which?] published by the CBSE it is written as^{[citation needed]}:

For Current Assets as :

For finding total Assets through the Assets method^{[citation needed]}:

For finding total Assets through Assets method:

To find the Equity of Total Assets: