4.15 Paula’s business expenses for the year ended 31 October 2012 are summarized as follows:

Insurance £7 280 Telephone £2 017 Other expenses £36 470 Examination of the detailed transactions in the insurance account shows the following:

£

Insurance charges for 7 months to 31 May 2012 2 660 Paid 3 June for 1 year from 1 June 2012 to 31 May 2013 4 620 7 280 Examination of the detailed transactions in the telephone account shows the following:

£

Bill for period 1 November 2011– 31 January 2012 690 Bill for period 1 February 2012 – 30 April 2012 627 Bill for period 1 May 2012 – 31 July 2012 700 2 017 The bill for the 3-month period to 31 October 2012 was not received until after the yearend.

The amount of the bill was £696.

What is the total amount of Paula’s business expenses for inclusion in her income statement for the year ending 31 October 2012?

a) £45 767

b) £43 768

c) £43 072

d) £41 825.