Ms Bates said one body, of William Mitchell, 87, “showed obvious signs of decomposition” after remaining in the room for 36 days.
She said Mr Mitchell’s family were “incredulous” when they learned his body had not been cremated.
Mr Elkin told police the firm had not been paid for the ceremony, but the pair had in fact received £2,040 from the family funeral plan, the prosecutor said.
The defendant told detectives the business was Ms Bell’s responsibility, but she said he was “actively involved” and had collected Mr Mitchell’s body, the court heard.
The pair also said they were waiting for their landlord to repair the mortuary’s leaking roof, the jury was told.
The prosecutor said the funeral directors had been insolvent “almost since it began in 2019” and its “business model was a case of robbing Peter to pay Paul”.
Mr Elkin is also accused of using a false certificate of funeral directing.
The trial continues.
