You entered into the following transactions

1. Introduced Rs700000 in the business by taking loan from bank of Baroda

2. Purchased machineries for Rs50000 and payment done by cheque

a. In order to record the accounting transaction in the books of accounts briefly define the steps to record, classify and summaries business transactions, that is accounting cycle.

b. Define the concept of accounting equation and record the above transactions following the accounting equation rule.