I think in the US we usually call Capital "Equity", so it's
Assets = Liabilities + Equity
Or net assets = equity.
The corollary for an accounting period
Assets + Expenses = Liabilities + Equity + Income
is more interesting. We say that the left side has a debit balance and the right side has a credit balance. It's easy to see how a few transactions work.
Pay a bill from checking, debit Expenses, credit Assets.
Buy something on credit card, debit Expenses, credit Liabilities.
Receive a payment for services, debit Assets, credit Income.
To close the accounts for the period, credit total Expenses to 0, debit Equity by that amount, and debit total Income to 0 and credit Equity by that amount.
Naturally, things are kept in subaccounts but this is the overall effect on the accounting equation.
Assets = Liabilities + Equity
Or net assets = equity.
The corollary for an accounting period
Assets + Expenses = Liabilities + Equity + Income
is more interesting. We say that the left side has a debit balance and the right side has a credit balance. It's easy to see how a few transactions work.
Pay a bill from checking, debit Expenses, credit Assets.
Buy something on credit card, debit Expenses, credit Liabilities.
Pay credit card, credit Assets, debit Liabilities.
Receive a payment for services, debit Assets, credit Income.
To close the accounts for the period, credit total Expenses to 0, debit Equity by that amount, and debit total Income to 0 and credit Equity by that amount.
Naturally, things are kept in subaccounts but this is the overall effect on the accounting equation.