At 31 March, a limited company shows the following figures in its statement of financial position. Ordinary share capital: $200\,000$ Retained earnings: $82\,500$ Share premium: $80\,000$ Each ordinary share has a par value of $0.40$. A bonus issue is carried out at the rate of $3$ shares for every $8$ shares held at 31 March. The issue is arranged so that the reserves remain in their most flexible form. What are the balances on the reserve accounts after the bonus issue has been made?
- ARetained earnings $7\,500$; Share premium $80\,000$
- BRetained earnings $52\,500$; Share premium $80\,000$
- CRetained earnings $82\,500$; Share premium $5\,000$
- DRetained earnings $82\,500$; Share premium $80\,000$