COGS = Opening Stock + Net Purchases + Direct Expenses - Closing Stock. Net Purchases = Purchases (125,000) - Returns (5,000) = 120,000. COGS = 30,000 + 120,000 + 2,000 - 40,000 = 112,000. Carriage outwards is a selling expense and is excluded from COGS.

Net Profit or Loss is calculated as Gross Profit minus Operating Expenses. If there is a Net Loss of Rs. 500, the equation is: 3,300 - Expenses = -500. Rearranging this, Expenses = 3,300 + 500, which equals Rs. 3,800. Therefore, the operating expenses must be Rs. 3,800 to result in the stated net loss.

All these equations represent the same fundamental relationship. Gross profit is the difference between net sales and the cost of goods sold. The other options are simply algebraic rearrangements of this basic accounting identity.

The Balance Sheet is structured specifically to reflect the accounting equation. It lists all assets on one side and the claims against those assets (liabilities and owner's equity) on the other, ensuring that the two sides always remain in balance at any given point in time.

Let G be GM commission and W be WM commission. G = 0.10 * (7500 - G). Solving gives G = 681.82. Then W = 0.05 * (7500 - 681.82 - W). Solving for W: 1.05W = 340.91, so W = 324.67. Note: The provided answer 339 suggests a different interpretation of 'after charging', but based on standard accounting practice, the calculation results in approximately 325.

Goods sent on 'sale or return' remain the property of the seller until the buyer accepts them. Therefore, at the end of the accounting period, these goods are still part of the seller's inventory and must be included in the stock valuation, as the sale has not been finalized and ownership has not transferred.

When closing stock appears inside the trial balance, it indicates that the adjustment has already been incorporated into the ledger accounts. Therefore, it is treated as an asset and appears directly in the Balance Sheet. If it were outside the trial balance, it would be credited to the Trading Account and shown as an asset. The provided answer A is common in some older accounting conventions, though modern practice usually places it in the Balance Sheet.

Cash on the balance sheet must represent liquid assets that are immediately available for use. Travel advances to employees are considered receivables or prepaid expenses rather than cash, as they are funds provided for specific future business purposes and are not available for general corporate use. Currency, money orders, and deposits in transit are all considered cash equivalents or cash because they are readily convertible into spendable funds.

Trademarks and goodwill are classified as intangible fixed assets, while buildings are classified as tangible fixed assets. In a company's balance sheet, all these items are grouped under the 'Fixed Assets' or 'Non-Current Assets' category because they are held for long-term use in the business operations rather than for immediate resale.

Outstanding wages represent an obligation for services already rendered by employees for which payment has not yet been made. Since this is a debt that the business must settle within the short term (usually within one year), it is classified as a current liability on the balance sheet.