Frannie Plc Has Made a Rights Issue of 5 Million

Multiple Choice

Frannie Plc has made a rights issue of 5 million new ordinary shares to raise cash. Each ordinary share of the company has a par value of 20 pence and the shares were issued at a premium of 280 pence. The current share price is 500 pence. What is the correct double entry required to record this transaction in the company's books of account?

A) Debit cash £14,000,000
Credit share premium £14,000,000
B) Debit cash £14,000,000
Credit share capital £1,000,000
Credit share premium £13,000,000
C) Debit cash £15,000,000
Credit share capital £1,000,000
Credit share premium £14,000,000
D) Debit cash £25,000,000