Once Jonty had completed his financial statements, he found that two mistakes had been recorded in his accounting records. error 1: Vehicle repair costs of $1500$ had been entered on the debit side of the vehicles account. error 2: Legal fees of $2100$, which related to the purchase of new premises, had been treated as expenses. Ignoring depreciation, what effect did these errors have on Jonty’s profit for the year?
- A$600 overstated
- B$600 understated
- C$3600 overstated
- D$3600 understated