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4 of 4 o + Fit to page Page view AV Read aloud 1 Add notes Question 2 A. Discuss the following accounting concepts: Going-concern - Conservatism - Matching concept with giving examples on how to apply them in the financial reports (10 marks) B. ADB Ltd has the following trial balance as at 31 December 2019 f f 300,000 180,000 90,000 Sales Machines Accumulated Depreciation for Machines Opening Stock (as of 1" Jan. 2019) Salaries expense Accounts Receivables Interests received Cash Purchases 30,000 40,000 150,000 90,000 75,000 100,000 75,000 Accounts Payables Rent Expenses Insurance Expense Properties Accumulated Depreciation for Properties 20,000 50,000 120,000 60,000 Share Capital 765,000 150 000 765,000 The following information is also available: (1) Closing stock at the 31st December 2019 is 20,000 (2) Included in insurance expense is machinery insurance costs of 12,000 for the year to 30th June 2020 (3) Late salaries of 10,000 for November and December 2019 has not been included in the salaries expense (4) Depreciation follows straight line method 20% for machines, and 10% for properties Required Showing full workings, you are required to: - Prepare an Income Statement and a Balance Sheet for ADB Ltd at 31" of December 2019 (50 marks) (Total of 60 marks)