The profit and loss account of Innovative Products Limited for the years 2016 and 2017 is given

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The profit and loss account of Innovative Products Limited for the years 2016 and 2017 is given below:


Particulars Sales Closing stock Total Expenses Opening stock Purchases Manufacturing and other expenses Total


The management was surprised to note that though the sales have increased by 9%, the profit before tax has actually declined almost by 35%. While reviewing the numbers it was revealed that the closing stock for the year 2016 was overstated by ₹ 1,000,000. You are required to restate the Profit and loss statement for both the years.

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