Prove that the Accoounting Equation is satisfied in all the following transaction of Rajaram. Also prepare a Balance Sheet : -
1. Started business with Cash Rs. 1,20,000.
2. Purchased a typewriter for Cash for Rs.8,000 for office use.
3. Purchased goods for Rs. 50,000 for cash.
4. Purchased goods for Rs.40,000 on credit.
5. Goods costing Rs.60,000 sold for Rs. 80,000 on credit.
6. Paid for Rent Rs. 1,500 and for salarires Rs.2,000.
7. Received Rs.800 for Commission.
8. Withdrew for private use Rs.5,000 in cash.

Explanation

Assets : Cash Rs.54,300 + Typewriter Rs. 8,000 + Stock Rs. 30,000 + Debtors Rs. 80,000 = Liabilities : Creditors Rs.40,000 + Capital Rs. 1,32,300, Balance Sheet Total Rs. 1,72,300.