Need help on solving Accounting Equation for given transaction

Anurag Gupta (Service) (41 Points)

16 May 2021  

I am trying to solve a given question in my Accounts book by using basic accounting equation i.e. Assets = Liability + Capital. The question is as shown in the picture attached. I have tried to solve its Asset side but am really confused as to how to balance this equation. My first thought was to increase some other item from asset side there way no way to do it. Alternatively, I thought to reduce equations RHS where either I could reduce Liability to balance the equation (which I dont find any reason to do it) or reduce the 'Capital' by same amount. But if we reduce the Capital then how can we justify this move? Please guide me.