Accounting Equation Problem 11

Following transactions are given:

1. Started business with bank balance Rs. 2,00,000.
2. Purchased goods worth Rs. 80,000, payment made by cheque.
3. Paid salary of Rs. 20,000 by cheque.
4. Sold goods with costing Rs. 50,000 for Rs. 70,000 cash.

Required: Accounting Equation

S.No.	Transactions	Assets	=	Capital	+	Liabilities
1	Business started with bank balance	+2,00,000		+2,00,000		0
	Beginning Equation	2,00,000	=	2,00,000	+	0
2	Goods purchased and paid by cheque	+80,000 -80,000		0		0
	New Equation	2,00,000	=	2,00,000	+	0
3	Salary paid by cheque	-20,000		-20,000		0
	New Equation	1,80,000	=	1,80,000	+	0
4	Goods sold on profit	+70,000 -50,000		+20,000		0
	Final Equation	2,00,000	=	2,00,000	+	0

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