A company with 125,000 ordinary shares of 1 each makes a rights issue on a 7 for 2 basis at 4 per share. How will the relevant entries in the statement of financial position change if all the rights issue is sold? OA. Share capital increases by 437,500 and share premium account increases by 1,312,500 OB. Share capital increases by 562,500 and share premium account increases by 1,687,500. OC. Share capital increases by 35,714 and share premium account increases by 107,143 OD. Share capital increases by 281,250 and share premium account increases by 843,750

A corrpary with 125,000 ordinary shares of f1 each maker a rights issue on a 7 foe 2 basis at f4 per share. How wilt the reievant entries in the staternent of financial position change if ail the nights issue is sold? A. Share capitai increases by 6437,600 and share premium account inceases by 67,312.500 B. Share capeat increases by 1$42,500 and share peecium socount increases by L,687,500 c. Share captal increases by 135,714 and ahare premium acocunt inciesses by [107,143 D. Share cageal increases by 1281,250 ard share premiam accourt increases by f643,750