Step – 1 : Area of fig. I = x x = x2
Step – 2 : Area of fig. II = x y = xy
Step – 3 : Area of fig. III = x y = xy
Step – 4 : Area of fig. IV = y y = y2
Area of big square = sum of the areas of figures I, II, III and IV
∴ (x + y) (x + y) = x2 + xy + xy + y2
(x + y)2 = x2 + 2xy + y2