Accounting Equation Problem 4

Give accounting equation for following transactions:

1. Rajiv deposited Rs. 1,50,000 in a bank account in the name of the business.
2. Purchased goods worth Rs. 50,000 and partially paid by cheque Rs. 10,000.
3. Sold goods costing Rs. 15,000 for Rs. 20,000.
4. Goods destroyed by fire costing Rs. 4,000.
5. Rent paid in advance Rs. 3,000.
6. Wages due but not paid Rs. 7,000.

Required: Accounting Equation.

S.No.	Transactions	Assets	=	Capital	+	Liabilities
1	Business started	+1,50,000		+1,500,000		0
	Beginning Equation	1,50,000	=	1,50,000	+	0
2	Purchased goods on cash and credit	+50,000 -10,000		0		40,000
	New Equation	1,90,000	=	1,50,000	+	40,000
3	Sold goods on profit	+20,000 -15,000		+5,000		0
	New Equation	1,95,000	=	1,55,000	+	40,000
4	Goods destroyed by fire	-4,000		-4,000		0
	New Equation	1,91,000	=	1,51,000	+	40,000
5	Rent paid in advance	+3,000 -3,000		0		0
	New Equation	1,91,000	=	1,51,000	+	40,000
6	Wages due but not paid	0		-7,000		+7,000
	final Equation	1,91,000	=	1,44,000	+	47,000

Note: If anybody have confusion in above given solution then comment me below.