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Inventory Management

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Multiple Choice

If the closing stock during a particular period is understated by Rs. 15,500 while the opening stock is overstated by Rs. 20,500, then profits are

  1. overstated by Rs. 36,000
  2. understated by Rs. 36,000
  3. overstated by Rs. 5,000
  4. understated by Rs. 5,000
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