One source of income for a business is rent earned by leasing out part of its premises. At 1 January 2022, the rent receivable account had a brought-forward balance of $1000$ for one month’s rent already received in advance. In the year ended 31 December 2022, the business collected additional payments amounting to $13\,000$ to cover the period from 1 February 2022 to 31 January 2023. From 1 April 2022, rent was increased by $10\%$. The statement of profit or loss for the year ended 31 December 2022 showed $13\,000$ for rent receivable, but this amount was incorrect. What impact did this error have on the profit for the year?
- A$100$ overstated
- B$100$ understated
- C$1100$ overstated
- D$1100$ understated