Harsha started business with cash ₹ 2,00,000, Purchased goods from Naman for cash ₹ 40,000 - Prepare Accounting Equation

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Prepare accounting equation on the basis of the following:

(a) Harsha started business with cash ₹ 2,00,000
(b) Purchased goods from Naman for cash ₹ 40,000
(c) Sold goods to Bhanu costing ₹ 10,000/- ₹ 12,000
(d) Bought furniture on credit ₹ 7,000







S.NoExplanationAssetLiabilities+Capital
  Cash+Stock+Debtors+Furniture=Creditors  
(a)Increase in cash2,00,000          
 Increase in capital       =  2,00,000
  2,00,000      =NIL+2,00,000
(b)Increase in stock  40,000        
 Decrease in cash(40,000)          
  1,60,000+40,000    =NIL+2,00,000
(c)Increase in debtors    12,000      
 Decrease in stock  (10,000)        
 Profit          2,000
  1,60,000+30,000+12,000  =NIL 2,02,000
(d)Increase in furniture      7,000    
 Decrease in creditors        7,000  
  1,60,000+30,000+2,00,000+ 7,000=7,000+2,02,000



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