On 1 July 2022, Kira Developments Ltd commenced operations by purchasing an existing business for $700 000. The purchase was partly financed by a 5 year bank loan, negotiated on the day and repayable in full at the end of the term. In the meantime, interest is payable at 9% per annum on the outstanding balance. The balance of the purchase was completed by the cash generated from an initial share issue. Applications had been invited for 200 000 $2.50 shares, payable in full on application on a first-come, first-served basis. By purchase date, the shares were fully subscribed and duly allotted. There were no share issue costs.

The fair values of the assets of the purchased business were as follows:

Asset	Fair value $	Useful life (years)
Plant and machinery	300 000	5
Freehold land	80 000	N/A
Buildings	160 000	20

There were no outstanding or contingent liabilities. The excess of the purchase consideration over the fair value of the assets acquired was recorded as goodwill.

None of the depreciable assets has a residual value.

During the first year of operations, the company recognised the following additional aggregate cash transactions:

$
Cash Sales	1 644 000
Cash Purchases	1 166 000
Selling Costs	164 000
Administration Charges	52 000
Wages and Salaries	240 000
Interest Payments (including overdraft)	20 000
Debenture Acquisitions (31 December, 10% pa)	120 000
Interest receipts	6 000

Additional Information:

Year end balances	$
Credit Sales	280 000
Credit Purchases	128 000
Inventory on hand	92 000
Allowance for doubtful debts/impairment	16 000
Accrued employee entitlements	10 000
Accounts receivable	108 000
Accounts payable	60 000
Bank Overdraft (at call)	8 000

After receiving the preliminary figures for the year, the directors of Kira Developments Ltd convened a board meeting on 30 June 2023 and resolved the following:

Declared a cash dividend of 10c per share, payable on 31 August 2023;

Transferred $20 000 out of retained earnings into plant maintenance reserve;

Revalued the freehold land by $40 000 (valuation by registered valuer, F.C. Holden & Assoc;

Noted that the journal entry to support the tax-effected revaluation was:

Dr	Land	40,000
Cr	Deferred Tax Liability	12,000
Cr	Asset revaluation reserve	28,000

Instructed the company accountant to complete the 2023 tax return. (company tax rate 30 %) [Please note that depreciation on buildings is not tax deductible and all impacting differences between the tax and financial reporting systems with respect to timing, recognition and amounts have been embodied into the trial balance template. Only a minimal tax note will be possible].

Adopted the credit manager's recommendation that no bad debts be written off;

Noted that 80% of the accrued employee entitlements were due to be settled within the following year.

Using the pro forma schedule supplied, fill a preliminary trial balance for Kira Developments Ltd based on the template below

Kira Developments Ltd - Trial Balance as at 30 June 2023	DR	CR
$'000	$'000
Sales	1924
Cost of sales	1202
Selling expense
Administration expense
Wages and salaries expense
Employee entitlements expense
Interest expense
Interest revenue
Depreciation expense
Doubtful debts expense
Plant and machinery
Freehold land
Buildings
Debentures (10% , 5 year)
Inventory
Accounts receivable
Allowance for doubtful debts (Allowance for impairment)
Accrued employee entitlements
Accumulated depreciation- plant and machinery
Accumulated depreciation- buildings
Goodwill
Accounts payable
Bank loan
Bank overdraft
Cash at bank
Share capital
Income tax expense	49.8
Income tax payable	49.8
Deferred tax asset	0
Deferred tax liability	12
Dividend payable
Asset revaluation reserve/revaluation surplus
Plant maintenance reserve
Retained earnings (before closing entries)		40
Totals	2921.8	2921.8