000) is a credit trans No . The transaction with Ms Samrat Furnitures (20.000) is a che stated to be cash payment. 2. Sale of goods has resulted in a profit of 10.000. It has been ade profit at the year end is transferred to Capital Account Illustration 2 It has been added to Prepare the Accounting Equation on the basis of the following 1. Started business with cash 70.000 2. Credit purchases of goods 18,000 3Payment made to creditors in full settlement 17.500. 4. Purchase of machinery for cash 20,000. Solution: