Closing stock of unsold goods was estimated at £5600 for ABC Traders at the end oftheir 1983 accounting year. Assuming that the actual level was £5150, the effect of the error is to :

(a) overstate profits for both 1983 and 1984 by £450;

(b) overstate the profit for 1983 by £450 and understate the profit for 1984 by

£450;

(c) understate the profit for 1983 by £450 and overstate the profit for 1984 by

£450;

(d) understate profits for both 1983 and 1984 by £450.