A retailer paid £75,000 as rent and treated the whole amount as expenditure for the year, overlooking the fact that the amount was for a five-year period commencing from the beginning of that year. The effect of this error would be:
(a) Net profit and current liabilities will be understated by £75,000
(b) Net profit and current assets are understated by £75,000
(c) Net profit and current assets are understated by £60,000
(d) Net profit and current assets are overstated by £60,000