1. The balance sheet of Fahmy plc. shows the following information in its assets and liability and equity section:

Assets	$
Non-current assets	350,000
Current assets	250,000
Total Assets	600,000
Liabilities and Equity
Total Liabilities	75,000
Equity:
Share capital: ordinary shares of $ 2 each	400,000
Reserves: Share premium	75,000
Reserves: Retained earnings	50,000
Total Liabilities and Equity	600,000

Fahmy Plc. Needs to raise more cash and decided to make 1 for 4 rights issue, fully paid in cash at a price $6 per share.

Required:

Show by using detailed workings the effect on the balance sheet accounts of the rights issue.

(10 Marks)