Initial conditions of switches:

Pushbutton switch: It is normally open switch is used and it is

indicated as (NO) above the top of the switch. So initially the switch is
open and no output flows through it unless it is pressed once.
Switch X1: A SPST (Single Pole Single throw) switch is used. This
switch is normally open in the initial condition and it turns on only when it
is pressed or closed once.
Green light output Y1: It is a switch in which the output depends on
the state of the green light output (y1).
Red light output Y0: It is a switch in which the output depends on
the state of red light output (Y0).

a) Switch Sw1 is off, pushbutton X0 is pressed:

SW1 switch is a normally open switch and when it is in of
state no contact is made for the circuit to close and no output
is turned ON. Even if the initially the lights are turned on it will
be turned OFF. If pushbutton X0 is pressed when Switch SW1
is turned OFF no efect takes place because there is no supply
for the pushbutton to turn ON. So when first SW1 is turned
OFF then every output is turned of and even pushbutton is
turned on there is no change in the output states.
Both red and green light are in of state.

b) Pushbutton is pressed again:

The initial state of the pushbutton is closed state because it is
already pressed once in the condition A. so when the
pushbutton is pressed again then the already closed switch is
opened and there is no change in the output state.
In this condition also both red and green light switches
are in of state.

c) Switch X1 is ON:
When the switch SW1 is turned ON the switch is closed and
the supply flows from it till the pushbutton. In the rung 1 a red
light output switch Y0 is in parallel with the SW1 but still the
red light output is of because the pushbutton is in of state
due to previous condition.
In the rung 2 green light output switch Y1 is in parallel with
the pushbutton when the SW1 is turned ON the supply is
reached up to the starting point of the switch and still the
 output of green light is closed because the pushbutton is in of
state and no power flows through it.
So by the condition C also there is no change in the outputs
both red and green lights are in of state.

d) Pushbutton is pressed:
When a pushbutton is pressed with already turned on SW1 the
pushbutton is closed and the both red and green light outputs
turns ON, and the input switches Y0 and Y1 also turns ON.
So by the pressing pushbutton in the condition D both
red light and green light output is turned ON state.

e) Pushbutton is pressed again:

When the pushbutton is pressed again with already closed
switch, it is turned of and the switch is opened. In this
condition the green light switch Y1 is in parallel with the
pushbutton, so even when pushbutton is turned of there is no
change in output of green light because it is already in ON
state due to previous condition, the current flows through the
parallel path of the Y1 bypassing the pushbutton switch in the
rung2. The same switch Y1 is in series with the parallel of Y0
and SW1 so red light is also turned on irrespective of the
pushbutton condition and this condition exits and the red and
green output is turned ON until the SW1 is turned of.
So by the condition E both the red and green lights are
in ON state and has no pushbutton efect ON it. These outputs
are turned of only when SW1 switch is opened.