if opening stock is overvalued then the amount should be deducted from the(a)gross profit(b)net profit(c)purchase(d)sales
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Answer:
deduct from gross profit
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Explanation:
Among the various options given in question statement the correct option is option a, gross profit.
Gross profit is calculated by considering the values of opening and the closing stock values.
In the given case when the actual value of opening stock is overvalued, then overall effect on stock difference will be less and this will impact the gross profit
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