Accounting Equation Problem 13

Following transactions are given:

1. Started business with Rs. 10,00,000.
2. Purchased machinery for Rs. 7,00,000.
3. Depriciation on machinery charged Rs. 70,000.
4. Commission received in advance Rs. 50,000.
5. invested additional capital of Rs. 3,00,000.
6. Withdrew Rs. 1,25,000 for private use.

Required: Accounting Equation

S.No.	Transactions	Assets	=	Capital	+	Liabilities
1	Started business	+10,00,000		+10,00,000		0
	Beginning Equation	10,00,000	=	10,00,000	+	0
2	Purchased machinery	+7,00,000 -7,00,000		0		0
	New Equation	10,00,000	=	10,00,000	+	0
3	Depriciation on machinery charged	-70,000		-70,000		0
	New Equation	9,30,000	=	9,30,000	+	0
4	Commission received in advance	+50,000		0		+50,000
	New Equation	9,80,000	=	9,30,000	+	50,000
5	Invested additional capital	+3,00,000		+3,00,000		0
	New Equation	12,80,000	=	12,30,000	+	50,000
6	Withdrew for private use	-1,25,000		-1,25,000		0
	Final Equation	11,55,000	=	11,05,000	+	50,000

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