Accounting Equation Problem 5

Mr. X had the following transactions.

1. Commenced business with cash Rs. 70,000.
2. Purchased goods for cash Rs. 15,000 and credit Rs. 25,000.
3. Sold goods for cash Rs. 30,000, costing Rs. 24,000.
4. Rent received in advance Rs. 4,000.
5. Paid salary Rs. 3,000 and salary outstanding Rs. 1,000.

Required: Accounting Equation.

S.No.	Transactions	Assets	=	Capital	+	Liabilities
1	Business started	+70,000		+70,000		0
	Beginning Equation	70,000	=	70,000	+	0
2	Goods purchased on cash and credit	+40,000 -15,000		0		+25,000
	New Equation	95,000	=	70,000	+	25,000
3	Sold goods at profit	+30,000 -24,000		+6,000		0
	New Equation	1,01,000	=	76,000	+	25,000
4	Advance rent received	+4,000		0		+4,000
	New Equation	1,05,000	=	76,000	+	29,000
5	Salary paid and outstanding salary	-3,000		-4,000		+1,000
	Final Equation	1,02,000	=	72,000	+	30,000

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