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Hamed company issued bonus shares of 2 for every 8 Common shares. The company had Common shares of 400 baiza - RO 8,000,000; Share premium

Hamed company issued bonus shares of 2 for every 8 Common shares. The company had Common shares of 400 baiza - RO 8,000,000; Share premium account RO 2,000,000; Retained earnings RO 5,000,000. The Journal entry to record the bonus issue will be:

a.

Dr Share Premium RO 5,000,000, Cr Share Capital RO 5,000,000

b.

Dr Share Premium RO 2,000,000, Dr Retained Earnings RO 3,000,000, Cr Share Capital RO 5,000,000

c.

Dr Retained Earnings RO 5,000,000, Cr Share Capital RO 5,000,000

d.

Dr Share premium RO 2,000,000, Cr Share Capital RO 2,000,000

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