The following records have been extracted from the stock ledger of XXL Ltd:

The opening inventory was 3,000 units costing ₹92 per unit. Till last year, the company used to follow LIFO method under periodic inventory valuation system, during the current year it was changed to FIFO. Find out the effect of change in the policy on profit and on the value of inventory.

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Date 02/04/07 21/05/07 Purchase Qty. 10,000 7,000 R Rate per unit 100 95 Date 15/04/07 28/05/07 Issue Qty. 8,500 3,500