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/-