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

Assets	$
Non-current assets	600,000
Current assets	200,000
Total Assets	800,000
Liabilities and Equity
Total Liabilities	200,000
Equity:
Share capital : ordinary shares of $ 3 each	300,000
Reserves : Share premium	200,000
Reserves : Retained earnings	100,000
Total Liabilities and Equity	800,000

Fahmy Plc. Needs to raise more cash and decided to make 1 for 4 rights issue, fully paid in cash at a price $5 per share.

Required:

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