Phil bought new premises and made these payments: premises $60000$, legal fees connected with the purchase $2000$, insurance for the financial year $700$. On recording the purchase of the premises, both the legal fees and the insurance were entered incorrectly. Phil’s accounting policy is not to charge depreciation on non-current assets in the year of purchase. What was the effect of the errors on the profit for the year?
- A$1300$ overstated
- B$1300$ understated
- C$2700$ overstated
- D$2700$ understated