Adjustments to be made for Stock Taking after Year-End

The trader prepared his accounts on 31st March every year, but due to some unavoidable reasons, stock-taking could only be done on April 2021, on which date the total cost of goods in the godown amounted to 50,000. The following facts were established between 31st March and April 2021:

1. Goods sold but not recorded
- The trader may have sold some goods between 31st March and April 2021, but these sales were not recorded in the accounts as of 31st March.
- The cost of these goods sold should be deducted from the total cost of goods in the godown as of April 2021.
- The trader should also record these sales in the current year's accounts.

2. Goods recorded but not in stock
- The trader may have recorded the purchase of some goods in the accounts as of 31st March, but these goods were not in the godown as of April 2021.
- The cost of these goods should be deducted from the total cost of goods in the godown as of April 2021.
- The trader should also adjust the accounts to reflect the correct stock position.

3. Goods in transit
- The trader may have purchased some goods as of 31st March, but these goods were in transit and had not yet arrived in the godown as of April 2021.
- The cost of these goods should be added to the total cost of goods in the godown as of April 2021.
- The trader should also adjust the accounts to reflect the correct stock position.

Conclusion

In conclusion, adjustments need to be made for stock-taking after the year-end to ensure that the accounts reflect the correct stock position. The trader should deduct the cost of goods sold but not recorded and goods recorded but not in stock, and add the cost of goods in transit. By doing so, the trader can ensure that the accounts are accurate and reliable.