It would seem that the Treasurer of The Labour Party was unaware that anonymous benefactors [now known as Lord X, Lady Y and Sir James Z, presumably] have loaned the party £14 million over the past couple of years. Now I'm no accountant so could someone explain to me in simple language how that can be?
If we take as a simple example, the household budget at AFF Towers. If I received loans of £14 million and put the money in a bank account and left it there, Mrs AFF [the Treasurer, in this example] would be unaware of the funds available, clearly. If, however, I used the money to buy the finest Beluga caviar, Dom Perignon champagne, and ready meals from Morrisons 'Finest' range, along with a number of other small luxuries, the Treasurer woulld become aware that we were spending far in excess of our income. If she thought that she was eating cod-fish roe and drinking lemonade, she would see the recipts from Harrods and say "Oi! Mr AFF! Where did the money come from that paid these bills?", I would have thought.
Are there any accountants out there who can explain this one to me, perchance?