Balance Sheet
Double entry accounting was created hundreds of years ago
as a way for accountants to check their arithmetic.


"Debit" means left.
_______________________

"Credit" means right.

Explanation
Debit

__$100,000 The amount you expect
__ to receive if you sell your home.
.
.
.
.
.
Credit

__ $80,000 Amount owed to bank.
__ $20,000 in Equity
__ _______
__ $100,000
,
.

_______________________
  1. You paid $85,000 for your home.
  2. You put $5,000 down and still owe $80,000.
  3. It could be sold for $100,000.
  4. Your home is worth $20,000 more than you owe.