proceeding 31 March is required then purchases during the period will be deducted and issues/sales (at acquisition price) during this period will be added. Both of the above mentioned cases could be understood and elaborated as under: When the Position of stock is given on a date prior to the r40 balance sheet date In this case, the following adjustments will generally be required: (a) Add purchases made during the period. (b) Deduct purchases returns during the said period. c Deduct inventory issued/sold between the two dates. (d) Add sales returns between the two dates. fih When the position of stock is given on a date after the balance sheet date For example, if the balance sheet is to be prepared as on 31* March, 2005 and the stock position has been given as on 15 April, 2005 the following adjustments will be required: (a) Less purchases made between 1" April, 2005 to 15 April 2005 (b) Add purchases returns between 14 April, 2005 to 15h April, 2005. (c) Add sales (at cost price) between 1 April, 2005 to 15th April, 2005, (d) Less sales returns between 1" April, 2005 to 15 April, 2005. Illustration: The financial year of Sultan S. & Co. ends on 314 December 2005. Stock taking continues upto 104 January, 2006. You are required to determine, the value of costing stock (at cost) as on 31 December, 2005 from the following information: @ The closing stock (valued at cost) came to Rs. 50,000 on 10th January, 2006. Purchases made in the first 10 days of January 2006 amounted to Rs. 2000. (it) Sales made from 1st January to 10 January in 2006 amounted to Rs. 8000. The firm makes a gross profit of 25% on sales