At 31 December 20X4 a companys capital structure was as follows:

$

Ordinary share capital 125,000

(500,000 shares of 25c each)

Share premium account 100,000

In the year ended 31 December 20X5 the company made a rights issue of 1 share for every 2 held at $1 per share

and this was taken up in full. Later in the year the company made a bonus issue of 1 share for every 5 held, using

the share premium account for the purpose.

What was the companys capital structure at 31 December 20X5?

Ordinary share capital Share premium account

A $450,000 $25,000

B $225,000 $250,000

C $225,000 $325,000

D $212,500 $262,500