Prove that the Accounting Equation is satisfied in all the following transactions of Suresh. Also prepare a Balance Sheet.

Prove that the Accounting Equation is satisfied in all the following transactions of Suresh. Also prepare a Balance Sheet.

(i) Commenced business with cash ₹ 60,000.

(ii) Paid rent in advance ₹ 500.

(iii) Purchased goods for cash ₹ 30,000 and credit ₹ 20,000.

(iv) Sold goods for cash ₹ 30,000 costing ₹ 20,000.

(v) Paid salary ₹ 500 and salary outstanding being ₹ 100.

(vi) Bought motorcycle for personal use ₹ 5,000.

[Assets: Cash ₹ 54,000 + Prepaid Rent ₹ 500 + Stock ₹ 30,000 = Liabilities: Creditors ₹ 20,000 + Outstanding Salary ₹ 100 + Capital ₹ 64,400.]