Why liability on left and asset on right?

Answer 1

This is inaccurate, neither liability nor assets dictate right or left of anything. However, if you are speaking of the Balance Sheet (one of many examples), Assets are actually listed on the Left Column (as they maintain a Debit Balance) while liabilities will be listed in the Right Column (as they maintain a Credit Balance)

To decide where the entry goes remember what Debit and Credit actually mean. Debit literally means Left Column or Left side, while Credit is just the opposite and means Right Column or Right Side.

Because Assets maintain a Debit Balance, all entries that increase the asset will be listed in the "left" column, while all entries that will decrease the asset will be listed in the "right" column.

For example, you purchase Supplies for $1,000 using CASH. Your entries will increase Supplies with a debit and decrease cash with a credit.

Supplies (dr) $1,000 (left side)

Cash (cr) $1,000 (right side)

It is just the opposite for Liabilities, as they maintain a Credit balance. Take the same transaction above but instead of paying cash you purchase the $1,000 in supplies on Credit, this gives you a liability (something you owe) You will still increase your asset of supplies with a debit, but this time you will Credit your Account Payable.