While finalising the current year’s profit, the company realised that there was an error in the valu….

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While finalising the current year’s profit, the company realised that there was an error in the valuation of closing stock of the previous year. In the previous year, closing stock was valued more by Rs. 50,000. As a result

Options :-

1. previous year's profit is overstated and current year's profit is also overstated
2. previous year's profit is understated and current year's profit is overstated
3. previous year's profit is understated and current year's profit is also understated
4. previous year's profit is overstated and current year's profit is understated

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