Suppose you have a simple circuit that contains only a 9-Volt battery and a resistor of $120 \Omega$. What is the current in the wire?

• $\Delta V = 9\text{ V}$
• $R = 120 \Omega$

• Current

• The wire has no (negligible) resistance.
• The circuit is in a steady state.
• Approximating the battery as a mechanical battery.
• There is no outside influence on the circuit.

• We represent the situation with following picture.

Let's start with node $A$. Incoming current is $I_1$, and outgoing current is $I_2$. How do we decide if $I_{A\rightarrow B}$ is incoming or outgoing? We need to bring it back to the Node Rule: $I_{in}=I_{out}$. Since $I_1=8 \text{ A}$ and $I_2=3 \text{ A}$, we need $I_{A\rightarrow B}$ to be outgoing to balance. To satisfy the Node Rule, we set $$I_{A\rightarrow B} = I_{out}-I_2 = I_{in}-I_2 = I_1-I_2 = 5 \text{ A}$$

We do a similar analysis for node $B$. Incoming current is $I_{A\rightarrow B}$, and outgoing current is $I_3$. Since $I_{A\rightarrow B}=5 \text{ A}$ and $I_3=4 \text{ A}$, we need $I_{B\rightarrow D}$ to be outgoing to balance. To satisfy the Node Rule, we set $$I_{B\rightarrow D} = I_{out}-I_3 = I_{in}-I_3 = I_{A\rightarrow B}-I_3 = 1 \text{ A}$$

For node $C$, incoming current is $I_2$ and $I_3$. There is no outgoing current defined yet! $I_{C\rightarrow D}$ must be outgoing to balance. To satisfy the Node Rule, we set $$I_{C\rightarrow D} = I_{out} = I_{in} = I_2+I_3 = 7 \text{ A}$$

Lastly, we look at node $D$. Incoming current is $I_{B\rightarrow D}$ and $I_{C\rightarrow D}$. Since there is no outgoing current defined yet, $I_{D\rightarrow battery}$ must be outgoing to balance. To satisfy the Node Rule, we set $$I_{D\rightarrow battery} = I_{out} = I_{in} = I_{B\rightarrow D}+I_{B\rightarrow D} = 8 \text{ A}$$

Notice that $I_{D\rightarrow battery}=I_1$. This will always be the case for currents going in and out of the battery (approximating a few things that are usually safe to approximate, such as a steady current). In fact, we could have treated the battery as another node in this example. Notice also that if you incorrectly reason about the direction of a current (incoming or outgoing), the calculation will give a negative number for the current. The Node Rule is self-correcting. A final diagram with directions is shown below.