Jones and sons is a firm of builders who have been trading for just over a year. The tax authorities have just raised a tax assessment on the firm based on different profit. The owner David Jones does not believe that the firm has done that well because they have an overdraft at the year end. He needs a profit figure with which to counter the claim by the tax authorities. Unfortunately proper accounting records have not been kept. However, the following facts have been established in respect of the year end. Van cost K240, 000. This needs to be depreciated at 25% straight line. Sundry building tools purchased in the year cost K80, 000 of which K20, 000 is to be written off. Inventory of cement and sand at cost K20, 000 Owed by clients K520, 000. A debt of K20, 000 is to be written off for work in dispute and a receivables allowance of 2% is required. There is an overdraft of K40, 000 Trade payables amount to K140, 000 There are accrued expenses of K3000. 4 The Jones family introduced K 200, 000 at the start of the year and has drawn out an average of K40, 000 per month. Required: a) Calculate the profit of Jones and Sons for the year, based upon the above information. (Total: 20 marks)