The owners equity formula is the accounting equation switched around. In order for the balance sheet to be considered balanced assets must equal liabilities plus equity. The Accounting Equation Is The Best Methods In Principle Of Accounting Learn Accounting Accounting Basics Accounting Education Skip to main content. . Web Equity is commonly known as shareholders equity or owners equity. Web Assets liability and equity are the three components of a balance sheet. Liability is the financial value of an obligation or debt owed by the business to another organisation or individual. For a sole proprietorship or partnership equity is usually called owners equity on the balance sheet. Liabilities and Owners Equity are equal to each other. The basic balance sheet equation is assets liabilities equity. Web If assets are 28000 and owners equity is 10000 liabilities are. Total assets equal 500000. In a corporation e...