Note: I have share the same question multiple times and still I ckuld not get the right answer showing detailed steps. Please solve the question in the picture and please also comment of how Rs $40,000$ will be adjusted. Please get it solve by financial accounting expert. The Balance Sheet of Fazal Din $\backslash$& Co$.$ as on $31$st December $2021$ was as follows:

BALANCE SHEET

During the year $2022$ the retained earnings increase $\backslash (50\backslash \%\backslash )$ 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 $\backslash (31^\{\backslash$text $\{$st $\}\}\backslash )$ December $2022$ as they had been on $\backslash (31^\{\backslash$text $\{$st $\}\}\backslash )$ December $2021,$ Inventories were reduced as follows:

Fixed Assets were reduced by depreciation of Rs$.4,000$ charged $\backslash (3/4^\{\backslash$text $\{$th $\}\}\backslash )$ to factory overhead and $\backslash (1/4^\{\backslash$text $\{$th $\}\}\backslash )$ 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 $\backslash (100\backslash \%\backslash )$ 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 $\backslash (10\backslash \%\backslash )$ and $\backslash (15\backslash \%\backslash )$ respectively of the gross sales.

Required:

$($a$)$ An Income statement for $2022,$ along with the details of Cost of goods manufactured and sold

$($b$)$ A balance Sheet as on $31$st December $2022.$