Accounting Equation 

Use accounting equation to show the efffect of the following transaction of M/s Royal Traders:
  1. Started business with cash Rs. 1,20,000
  2. Purchased goods for cash Rs. 10,000
  3. Rent received Rs. 5,000
  4. Salary outstanding Rs. 2,000
  5. Prepaid Insurance Rs. 1,000
  6. Received interest Rs. 700
  7. Sold goods for cash (Costing Rs. 5,000) Rs. 7,000
  8. Goods destroyed by fire Rs. 500
Solution :-