Accounting Equation Problem 7

You are given the following transactions.

1. Commencement of business with Rs. 5,00,000.
2. Purchased goods for Rs. 1,00,000 from A and Co. and made a partial payment Rs. 60,000.
3. Salary paid in the amount of Rs. 20,000.

Required: Accounting Equation.

S.No.	Transactions	Assets	=	Capital	+	Liabilities
1	Business started	+5,00,000		+5,00,000		0
	Beginning Equation	5,00,000	=	5,00,000	+	0
2	Purchased goods on cash and credit	+1,00,000 -60,000		0		+40,000
	New Equation	5,40,000	=	5,00,000	+	40,000
3	Salary paid	-20,000		-20,000		0
	Final Equation	5,20,000	=	4,80,000	+	40,000

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