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

Assets = Liabilities + Owner's Equity

Transaction Analysis:
In this case, the transaction involves the purchase of a car for Rs. 5,00,000 on 1st October 2019 and the depreciation charged on the car for the year ended 31st March 2020 at a rate of 10% per annum using the straight-line method.

1. Initial Purchase:
When the car is purchased on 1st October 2019, the accounting equation is affected as follows:

Assets:
The car is classified as an asset since it is expected to provide future economic benefits to the company. Therefore, the value of the car, Rs. 5,00,000, is added to the asset side of the equation.

Assets = Rs. 5,00,000

2. Depreciation:
Depreciation is the allocation of the cost of an asset over its useful life. In this case, the car is depreciated at a rate of 10% per annum using the straight-line method. The depreciation expense for the year ended 31st March 2020 is calculated as follows:

Depreciation Expense = (Cost of Car * Depreciation Rate) / 12 * (Number of Months)

Depreciation Expense = (Rs. 5,00,000 * 10%) / 12 * 6 = Rs. 25,000

3. Accounting Equation:
The depreciation expense reduces the value of the car, which is reflected in the accounting equation as a decrease in assets. The depreciation expense is added to the expense side of the equation, reducing the owner's equity.

Assets = Rs. 5,00,000 - Rs. 25,000 = Rs. 4,75,000
Owner's Equity = Owner's Equity - Rs. 25,000

Summary:
The purchase of the car and the depreciation charged on the car are reflected in the accounting equation as follows:

Assets: The value of the car is initially added to the asset side of the equation. After the depreciation charge, the value of the car is reduced.

Owner's Equity: The depreciation expense is subtracted from the owner's equity, reflecting a decrease in the owner's investment in the car.

Liabilities: There is no mention of any liabilities in this transaction, so the liabilities side of the equation remains unchanged.

Overall, the accounting equation remains balanced, ensuring that the company's total assets are equal to the sum of its liabilities and owner's equity.