Which of the following statements is TRUE?

On 31 December 20X6 GHI makes a bonus issue of 50,000 shares On this dale the nominal value of the shares is $1 and the market value is $3 GHI has a share premium account with a substantial credit balance. The share capital account is credited correctly in the nominal ledger.

Which of the following statements is TRUE?
A . The bonus issue is valued at $3 per share and the debit entry is to the cash account
B . The bonus issue is valued at $1 per share and the debit entry is to the share premium account
C . The bonus issue is valued at $1 per share and the debit entry is to the cash account
D . The bonus issue is valued at $3 per share and the debit entry is to the share premium account

Answer: B