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The Balance Sheet of Fazal Din & Co$.$ as on $31$st December $2021$ was as follows:

BALANCE SHEET

Liabilities & Capital

Amount

Assets

Amount

Current Liabilities

Paid$-$up$-$Capital

$3,000$ ordinary shares of Rs$.10$ each

Retained Earnings

Rs$.17,500$

Rs$.30,000$

Rs$.10,000$

$\_\_\_\_\_\_\_\_\_$

Rs$.57,500$

Cash

Accounts Receivable

Materials

Work in Process

Finished Goods

Prepaid expenses

Fixed Assets$($net$)$

Rs$.5,000$

Rs$.10,000$

Rs$.4,000$

Rs$.2,000$

Rs$.6,000$

Rs$.500$

Rs$.30,000$

$\_\_\_\_\_\_\_\_\_$

Rs$.57,500$

During the year $2022$ the retained earnings increase $50\%$ as a result of good business. No dividend was paid during the year. Balances of Accounts receivables, prepaid expenses, current liabilities and paid$-$up capital were the same as $31$st December $2022$ as they had been on $31$st December $2021,$ Inventories were reduced as follows:

Material $50\%$

Work in process $50\%$

Finished goods $33-1/3\%$

Fixed Assets were reduced by depreciation of Rs$.4,000$ charged $3/4$th to factory overhead and $1/4$th to administrative expenses. Sales were made of Rs$.60,000$ on account of finished goods costing Rs$.40,000.$ Direct labor cost was Rs$.9,000.$ Factory overhead was applied at the rate of $100\%$ of direct labor cost, leaving Rs$.2,000$ under applied which was closed to cost of goods sold account. Total marketing and administrative expenses amounting to $10\%$ and $15\%$ respectively of the gross sales.

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