Problem:

Demonstrate the accounting equation on the basis of following transactions and present a balance sheet on the basis of ending equation in books of M/s Charlie.

• Commenced business with cash $ 70,000/-, Furniture $ 2,000/- and Creditors $ 12,000/-

• Purchased goods on credit $ 14,000/-

• Withdrew for private employ $ 10,000/-

• Paid Salary $ 2,000/-

• Paid to creditors $ 10,000/-

• Sold goods for cash $  6000/-, costing $ 3,000/-

• Sold goods for cash $ 15000/-, costing $ 10,000/-

• Bought furniture for cash $ 2,000/-

• Commission Paid $ 1,500/-

• Goods utilized for personal purpose $ 2,000/-