Final answer:
Accounts on the left side of the accounting equation, representing assets, are increased with debits in a T-account. The equation includes assets, liabilities and stockholders' equity, where a bank's assets might encompass reserves and loans, and liabilities would be customer deposits.
Step-by-step explanation:
The accounting equation is Assets = Liabilities + Stockholders' Equity. On the left side of this equation, which represents the assets of a firm, accounts are increased with debits. In the context of a T-account, which is a visual representation of this equation, the left side indicates the assets while the right side indicates liabilities and stockholders' equity. In practice, when a bank records transactions, its assets may include cash reserves, loans made, and government securities. Its liabilities would include deposits from customers which the bank owes back. The bank's net worth, or stockholders' equity, would be calculated by subtracting total liabilities from total assets and is recorded on the right-hand side of the T-account to ensure the equation balances.