Effects of Each Transaction:

1. Start business with cash Rs.70,000 and Machinery Rs. 50,000:
- Increase in assets:
- Cash: + Rs. 70,000
- Machinery: + Rs. 50,000

2. Purchased goods from Chandru on credit Rs. 5,000:
- Increase in assets:
- Inventory (Goods): + Rs. 5,000
- Increase in liabilities:
- Accounts Payable (Chandru): + Rs. 5,000

3. Deposited Rs. 5,000 into bank:
- Increase in assets:
- Cash: + Rs. 5,000
- Increase in liabilities:
- Bank: + Rs. 5,000

4. Paid cash to Chandru Rs. 5,000:
- Decrease in assets:
- Cash: - Rs. 5,000
- Decrease in liabilities:
- Accounts Payable (Chandru): - Rs. 5,000

5. Purchased goods for Rs. 8,000 for cash:
- Increase in assets:
- Inventory (Goods): + Rs. 8,000
- Decrease in assets:
- Cash: - Rs. 8,000

Explanation:

1. Start business with cash Rs.70,000 and Machinery Rs. 50,000:
- The business begins with an initial investment of Rs. 70,000 in cash and Rs. 50,000 worth of machinery. These are recorded as assets in the accounting equation.

2. Purchased goods from Chandru on credit Rs. 5,000:
- The business purchases goods worth Rs. 5,000 from Chandru on credit. The inventory (goods) is increased by Rs. 5,000, representing the value of goods acquired. At the same time, an equal liability is created under accounts payable (Chandru) as the payment is yet to be made.

3. Deposited Rs. 5,000 into bank:
- The business deposits Rs. 5,000 into the bank, increasing the cash asset by the same amount. Simultaneously, a liability is created under the bank account, indicating the business's obligation to repay the deposited amount.

4. Paid cash to Chandru Rs. 5,000:
- The business pays Rs. 5,000 in cash to Chandru, reducing the cash asset by the same amount. The liability under accounts payable (Chandru) is settled, resulting in a decrease in liabilities.

5. Purchased goods for Rs. 8,000 for cash:
- The business purchases goods worth Rs. 8,000 for cash. The inventory (goods) asset increases by Rs. 8,000, representing the value of goods acquired. Simultaneously, the cash asset decreases by the same amount as payment is made in cash.

Overall, these transactions result in changes to the assets, liabilities, and owner's equity of the business, as recorded in the accounting equation. The equation always remains in balance, with the total assets equaling the sum of liabilities and owner's equity.