The Accounting equation is : Assets minus
Your own home is a great example:
The house and land is the asset.
The mortgage to the bank is the liability.
The difference between the two is your equity.
Let's say your home has a value of $650,000 (asset).
Let's say your mortgage to the bank is $350,000 (liability).
The difference between the two is all yours – the equity, which in this example is $300,000.