Suppose you have a wire whose resistance you know. The wire has a length of 2 cm, and has a cross-sectional area of 1 mm$^2$. The resistance of the wire is 50 m$\Omega$.

• $I_1=8 \text{ A}$, $I_2=3 \text{ A}$, and $I_3=4 \text{ A}$.
• $I_1$, $I_2$, and $I_3$ are directed as pictured.

• All other currents (including their directions).

• The current is not changing (circuit is in steady state).
• All current in the circuit arises from other currents in the circuit.
• No resistance in the battery (approximating the battery as a mechanical battery)

• We represent the situation with diagram given.
• We represent the Node Rule as $I_{in}=I_{out}$.

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.