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A chemical equation represents a chemical reaction using chemical formulas, with reactants on the left and reaction products on the right. A balanced chemical equation has the same number of chemical atoms of each chemical element on both sides. For molecular hydrogen and molecular oxygen forming water,The coefficients $2,1,2$ give the relative numbers of molecules; the coefficient $1$ is normally omitted. Count hydrogen as $2\times 2=4$ on the left and $2\times 2=4$ on the right, and oxygen as $1\times 2=2$ on the left and $2\times 1=2$ on the right. See Flowers et al., Chemistry 2e, §4.1: writing and balancing chemical equations.

To balance the initial expression ${\mathrm{H}}_2+{\mathrm{O}}_2⟶{\mathrm{H}}_2\mathrm{O}$, first put $2$ before water to match the two oxygen chemical atoms. This creates four hydrogen chemical atoms on the right, so put $2$ before molecular hydrogen. Changing a coefficient multiplies the entire chemical formula. Changing a subscript changes composition and usually the chemical substance: $2{\mathrm{H}}_2\mathrm{O}$ is two water molecules, whereas ${\mathrm{H}}_2{\mathrm{O}}_2$ is one hydrogen peroxide molecule. Never balance a chemical equation by changing its subscripts.

The bookkeeping follows from conservation of the atomic nuclei in ordinary, non-nuclear chemical reactions; chemical bonds and the distribution of Electrons can change. For a chemical equation involving ions, total electric charge must also match. For example, the existing self-ionization of water equation has zero total electric charge on each side, since the $+1$ of hydronium cancels the $-1$ of hydroxide. See 2.6 Ionic and Molecular Compounds (§2.6: nuclei and ions).

The same $2:1:2$ ratio relates changes in amount of substance: two moles of molecular hydrogen consumed per mole of molecular oxygen correspond to two moles of water formed. A mole is a defined unit, not one molecule; the little whole-number picture is an abstract counting model, not a claim that a macroscopic sample contains just five molecules. See molecular count and amount of substance for the exact conversion and BIPM, SI base unit: mole for the definition.

This is why a balanced chemical equation is useful: stoichiometry turns the same atom accounting into relations between measurable quantities. It does not determine reaction rate, the final conversion set by chemical equilibrium, or the actual yield of recovered reaction products. The limiting reagent gives an upper bound under the specified chemical reaction.

The limiting reagent is the reactant exhausted first if the specified chemical reaction proceeds to the maximum conversion permitted by stoichiometry. With initial values of amount of substance $n_{i,0}$ for the reactants and positive consumption coefficients $a_i$, the largest forward extent of reaction is ${\xi }_{\max }={\min }_i(n_{i,0}/a_i)$. Compare these quotients, rather than simply choosing the smallest initial quantity. This calculation predicts the maximum reaction product quantity and identifies which reactant supply must increase to raise it. See Flowers et al., Chemistry 2e, limiting reactants.

Start with $3\mathrm{mol}$ of molecular hydrogen, $1\mathrm{mol}$ of molecular oxygen and no water. Assume complete conversion by the displayed chemical reaction, without competing reactions. ThenThe molecular oxygen is the limiting reagent. Consumption of $2\mathrm{mol}$ of molecular hydrogen and $1\mathrm{mol}$ of molecular oxygen forms $2\mathrm{mol}$ of water, leaving $1\mathrm{mol}$ of molecular hydrogen. Initially there are $1.806642228\times 10^{24}$ molecular hydrogen molecules and $6.02214076\times 10^{23}$ molecular oxygen molecules; after conversion there are $1.204428152\times 10^{24}$ water molecules and $6.02214076\times 10^{23}$ leftover molecular hydrogen molecules.

As a check, the initial inventory has $6\mathrm{mol}$ of hydrogen chemical atoms and $2\mathrm{mol}$ of oxygen chemical atoms. The final water contains $4\mathrm{mol}$ of hydrogen chemical atoms, and leftover molecular hydrogen supplies the remaining $2\mathrm{mol}$. The atom totals balance even though the total amount of substance of molecules falls from four to three moles.