Q. No 2 (Right Shares) Company ABC has in issue 1,000,000 RO 1 equity shares with a current market value of RO 3 each. It also has a balance of RO 100,000 in its share premium account, RO 200,000 in its bank account and Heavy equipment of OMR 900,000 and Plant and Machinery RO 520,000 before such issue. The company has Accounts payable RO 120,000 and Non-current liabilities RO 400,000. It offers a rights issue of 1 for 5 shares at an offer price of RO 2. The offer is only taken by 80% of Shareholders.

Journalize the given entries show the necessary calculations and also the abstract of Balance sheet after such issue.