Part A Accounting concepts are of fundamental importance in the preparation of financial statements. With the aid of relevant examples, outline your understanding on any three of the following concepts. - Accruals - Going Concern - Historical Cost - Prudence - Realisation (9 Marks) Part B Sully Ltd owns and operates a number of pet shops. The trainee accountant has prepared a draft profit and loss account for the year ended 31 December 2021. She is unsure of the treatment of the following: 1) Sully Ltd has recently received pet food on a sale or return basis. The directors have not decided whether this pet food will be purchased. The total cost price of the food is 10,000. The food has been included in the year end stock-take and valued at the cost price. 2) Part of one shop is rented out to a stationary business. Sully Ltd is owed rent of 2,000 at 31 December 2021. This has not been included in the draft final accounts. 3) Included in the closing stock were pet toys at a cost price of 2,000. They would normally sell for 4,000. However, they have been damaged and can only be sold for 1,500. Page 3 of 6 4) Sully Ltd purchased new fixtures and fittings costing 27,500 during the year. These have been included in fixed assets and have been depreciated at a rate of 10% per annum using the straight-line method. The suppliers charged 750 for delivery of the fixtures and fittings and this has been added to expenses. Requirement: Copy the table below in your answer booklet. Complete the table and for each item, state a relevant accounting concept and the effect if any adjustment would have on the net profit. (16 Marks) (Total marks: 25 marks)