1. Alpha Ltd. Has the following details as on March 31, 2016

	2016	2015
Sales	2250	2000
Opening stock	30	20
Production	2460	2000
Closing stock	400	30
Cost of goods sold (opening stock + production Closing stock)	2090	1990
Other expenses	80	50
Net Profit/Loss	80	(40)

1. Suppose the accountant has wrongly computed the closing stock while adding stocks, to an extent of 30%. What would be the impact on the profit of the Alpha Ltd compare to the previous year (2015)? [5]
2. Suppose the error was not rectified in the current year (31^st March 2016). Next year Alpha has produced Rs.2650 and sold goods for Rs.2800. It has a closing stock of Rs.240 and there is no error in computing the closing stock value. What will be the reported profit for the year ending 31^st March 2017? [5]