Accounting Equation The intern is puzzled and asks "Are you sure the accounting equation is still in balance Using the corrected trial balance you prepared, prove that the accounting equation is in balance Assets = Liabilities Stockholders Equity Sol purried, the internes "Why do none of the amounts in the accounting equation equal the totals on the trial balance The accounts with debit balances are not all classified in the same element of the accounting equation for example, not all accounts with debit balances are assets This is because the revenue and expense accounts are part of the stockholders' equity element. The accounts with debit balances should be part of the total assets You point out the total of the assets, lies and stockholders equity is equal to the sum of the debit and credit totals on the trial balance d. The accounts with credit balances are not all classified in the same element of the accounting equation For example, not all accounts with credit balances are liabilities The accounts that make up the total for stockholders guity have a mix of debit and credit balances