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Why does a Balance Sheet balance (assets = liabilities + equity)?

Accounting Finance
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Question added by Majid Wangade , Senior Accountant , KANTOUR LIMITED COMPANY ( Real Estate, Construction and Asset Management )
Date Posted: 2016/03/10
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Mary Ann Triste
by Mary Ann Triste , FINANCIAL ACCOUNTANT , Heavyweight Air Express FZCO

Because entity's assets come from company's liabilities and equity (investments or capital and it's profit or earnings / dividends)

Peter Sequeira
by Peter Sequeira , Acountant , Milroc Good Earth Developers

The main reason the balance sheet balances is due to the principle of double entry. Every transaction will affect 2 accounts. 

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