Explain how you would respond to each of the above queries. Where relevant state:

(i) Definition of the element in the conceptual framework that you are

considering

(ii) How the item relates to the definition

(iii) How the items concerned should be treated.

6. In the expenses shown in the income statement you have included a big electricity bill which we did not receive until after the end of the year. Can you not include this in next year's accounts