Accounting Equation 
prepare accounting equation of Madanlal form the given transaction :
  1. Started business with cash Rs. 1,20,000
  2. Advance Rent paid Rs. 1,000
  3. Bought goods in cash Rs. 60,000
  4. Bought goods in credit Rs. 40,000
  5. cash sale Rs. 60,000 (cost price Rs. 40,000)
  6. Paid salaries Rs. 1,000
  7. Bought scooter for personal use Rs. 10,000
  8. Outstanding salary paid Rs. 200
Solution :-