Colin made a mistake in his calculations that resulted in the value of his closing inventory at 30 April 2009 being overstated by $900. The value was calculated correctly at 30 April 2010. What was the effect of the error on the profit reported in Colin’s accounts for each of the two years?LO1.

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2009 a. Overstated by $900 b. Overstated by $900 c. Understated by $900 d. Understated by $900 ACCA adapted 2010 not affected understated by $900 not affected overstated by $900