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b) The following is the capital structure of Kioko Co Ltd. Shs Ordinary share capital 100,000 shares @ shs 10 1,000,000 Share premium 500,000 Retained

b) The following is the capital structure of Kioko Co Ltd. Shs Ordinary share capital 100,000 shares @ shs 10 1,000,000 Share premium 500,000 Retained earnings 800,000 Total capital employed 2,300,000 Kioko Co. Ltd intends to declare a stock dividend of 10% on its ordinary shares such that it will give 1 share for 10 at shs 10. Required i) Compute the number of new ordinary shares arising out of this issue. (3 Marks) ii) Prepare different accounts arising out of this issue. (5 Marks) iii) Show the new capital structure after this issue. (7 Marks)

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