**Accounting Equation for Sohan's Business:**

The accounting equation is a fundamental principle in accounting that represents the relationship between a company's assets, liabilities, and owner's equity. It can be expressed as:

Assets = Liabilities + Owner's Equity

In Sohan's case, we will break down the accounting equation based on the provided information:

**1. Sohan started the business with Cash Rs. 1,00,000:**
- Cash is an asset, representing the amount of money Sohan invested in the business.
- Therefore, the assets side of the accounting equation increases by Rs. 1,00,000.

**2. Sohan Purchased goods on Credit Rs. 5,000:**
- Purchasing goods on credit means that Sohan acquired goods but did not pay for them immediately. Instead, he has an obligation to pay in the future.
- This creates a liability for Sohan, as he owes the supplier Rs. 5,000 for the goods received.
- Therefore, the liabilities side of the accounting equation increases by Rs. 5,000.

**Accounting Equation after the transactions:**

Based on the above transactions, the accounting equation can be updated as follows:

Assets = Liabilities + Owner's Equity
Rs. 1,00,000 = Rs. 5,000 + Owner's Equity

**Explanation:**

1. The transaction where Sohan started the business with cash of Rs. 1,00,000 increases the asset side of the accounting equation. This is because cash is an asset that Sohan has contributed to the business.

2. The second transaction involves the purchase of goods on credit. In this case, the assets side of the equation is not affected since no cash is involved. However, the liabilities side of the equation increases by Rs. 5,000 because Sohan has a liability to pay the supplier for the goods received.

Overall, these transactions affect the accounting equation by increasing both the assets and liabilities sides. The increase in assets was due to the cash invested by Sohan, while the increase in liabilities was due to the credit purchase of goods.

It is important to note that the owner's equity is not affected by these transactions since Sohan did not introduce any additional capital or withdraw any profits. The owner's equity will change when the business generates profits or incurs losses, introduces additional capital, or makes withdrawals.