While finalizing the current years accounts, the company realized that an error was made in the calculation of closing stock of the previous year. In the previous year, closing stock was valued more by 50,000. As a result

A. Previous years profit is overstated and current years profit is also overstated.

B. Previous years profit is overstated and current years profit is understated.

C. There will be no impact on the profit of either the previous year or the current year.

D. Previous years profit is understated and current years profit is overstated.

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