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when assets increase by the same amount as liabilities owners equity will not change purchase $10 of inventory on account we already saw this our assets went up by 10 liabilities went up by 10 no change in equity if we borrowed $10 under note agreement our assets would go up by 10 and its a note thats a liability no change in equity if we borrowed $10 using a mortgage to purchase a home wed have an asset called home go up and a mortgage payable go up as you can see Equity never changed and so theres zero on this side and zero on the other side
