Bonus issue A company has an issued share capital of 500 000 ordinary shares of $1 each. The company makes a bonus issue of one ordinary share for every two shares held. What will the effect be on the share capital account and on the net current assets?

A. Share capital increases by $250 000. Net current assets increase by $300 OW

B. Share capital increases by $250 000. Net current assets are unchanged

C. Share capital increases by $300 000. Net current assets increase by $50 000

D. Share capital increases by $300 000. Net current assets are unchanged.