Prepare accounting equation from the following :
(i) Started a business with cash Rs.1,00,000 and goods worth Rs.20,000.
(ii) Sold 50% of above goods at a profit of Rs. 2,000 on credit to Ram.
(iii) Rent paid Rs.5,000.
(iv) Ram paid 50% of his balance in cash.

Explanation

Cash Rs.1,01,000 + Stock Rs.10,000 + Ram Rs. 6,000 = Liabilities : Capital Rs. 1,17,000.