To start with, in accounting concepts, an entity is seperate from its owner.So, if an owner invests Rs.100, it will be like the business/entity has borrowed Rs.100 from the owner.Hence, Rs.100 will be shown in assets side in Cash and Bank balance and Rs.100 will be shown as liability (to be paid to owner>>>under Equity/Capital).
Out of the 100, if 30 is used to buy fixed asset, then cash and bank balance will be 70 and fixed assets will be Rs.30 making the total asset 100 and liabilities remaining unchanged at 100.
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