Final answer:
The accounting equation, Assets = Liabilities + Equity, would be adjusted for a payment of Rs 5000 for advertising by reflecting a decrease in both assets and equity. Specifically, it would be represented as Assets - 5000 = Liabilities + (Equity - 5000) after the transaction.
Step-by-step explanation:
The accounting equation is a fundamental principle in accounting that represents the relationship between a company's assets, liabilities, and equity. It is expressed as Assets = Liabilities + Equity. When a payment for advertising by cheque of Rs 5000 is made, this would decrease the company's bank balance (an asset) and also decrease the equity if paid from retained earnings or net income. However, if the advertising is considered an expense, it reduces the net income, and thus retained earnings, a part of equity. So, the accounting equation would reflect this transaction as a decrease in both assets and equity. Therefore, the accounting equation would be adjusted to reflect the payment for an expense:
Before the transaction:
Assets = Liabilities + Equity
After the transaction:
Assets - 5000 = Liabilities + (Equity - 5000)
Where the 'Assets - 5000' represents the decrease in the bank balance after the payment by cheque, and '(Equity - 5000)' represents the reduction in retained earnings due to the accounting for the advertising expense.