Question 4 Paloma runs a sole trader business as a hairdresser. She has certain expenses that she incurs in running her salon, two of which are insurance and water. Her nancial year runs from 1 April to 31 March. The following information is available regarding her water and her insurance in respect of the year ended 31 March 201 1. Water Paloma received five water invoices (bills) during the prior 14 months. Details of these are as follows: - Period from 1 February 2010 to 30 April 2010 450 - Period from 1 May 2010 to 31 July 2010 425 0 Period from 1 August 2010 to 31 October 2010 395 - Period from 1 November 2010 to 31 January 201 1 425 - Period from 1 Pebmary 201 l to 30 April 201 l 430 Paloma received the water bills within two weeks following the end of the period they referred to. She paid all the water invoices by direct debit [direct payment from her business bank account} one week after receiving each invoice. She had an accrual for water of 300 on the statement of nancial position as at 31 March 2010. Insurance The insurance company sent her a letter to tell her that the insurance premium for the year from 1 June 2010 to 31 May 201 1 would be 10% higher than the equivalent for 1 June 2000I to 31 May 2010, which was 2,200. The insurance premium for each year