**Equation for the Transaction**

The equation for the given transaction can be represented as follows:

**Assets = Liabilities + Owner's Equity**

In this case, the purchase of goods on credit by Gopal will increase the assets and create a liability in the form of a creditor.

**1. Assets:**
Assets are the resources owned by a business that have economic value. In this transaction, the assets will increase on the asset side of the equation because Gopal has purchased goods. The value of the goods purchased on credit is Rs. 16,000.

**2. Liabilities:**
Liabilities are the obligations or debts owed by a business. In this case, the transaction creates a liability in the form of a creditor. A creditor is a person or entity from whom the goods have been purchased on credit.

**3. Owner's Equity:**
Owner's equity represents the owner's share in the business. It is the residual interest in the assets of the business after deducting liabilities. However, in this transaction, there is no mention of any change in the owner's equity.

**Explanation:**
When Gopal purchased goods on credit for Rs. 16,000, it means he acquired goods without making an immediate payment. This increases the assets of Gopal's business because he now owns goods worth Rs. 16,000. These goods have economic value and can be used or sold to generate revenue.

At the same time, this transaction also creates a liability for Gopal's business. The person or entity from whom the goods have been purchased on credit is called a creditor. The creditor has provided goods to Gopal's business without receiving immediate payment, so Gopal's business now owes Rs. 16,000 to the creditor.

Therefore, the equation for this transaction can be written as:
**Assets = Liabilities + Owner's Equity**
**Rs. 16,000 (Goods) = Rs. 16,000 (Creditor's Liability) + Owner's Equity**

Note: It is important to understand that this equation represents the accounting equation and is used to maintain the balance between the different elements of a business's financial position.