0743241064

KCSE MOCK TRIALS

BUSSINES PAPER 2
FOR ANSWERS CALL 0743241064
WE ALSO HAVE ;

❖ KCSE MOCKS
❖ SETBOOK QUESTIONS AND ANSWERS
❖ SETBOOK NOTES
❖ TEACHING NOTES
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❖ OPENER, MID AND ENDTERM EXAMS
❖ JSS EXAMS
❖ JSS NOTES

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TRIAL ONE

NAME: ……………………………………………………..
SCHOOL……………............

ADM NO:………………………… DATE:………………..

SIGNATURE………….……

565/2
BUSINESS STUDIES
THEORY
PAPER 2
FORM FOUR
TIME: 2 ½ Hours
INSTRUCTIONS

1. This paper consists of six questions.

2. Answer any five questions.
3. All questions carry equal marks.
4. Candidates should answer questions in English.

FOR EXAMINERS USE ONLY

QUESTION MAXIMUM CANDIDATE’S

SCORE SCORE
1. 20
2. 20
3. 20
4. 20
5. 20
6. 20

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1(a) Explain five differences between a public corporation and a public

limited company.
(10 mks)
(b) Explain five factors that would lead to increase in the level of National
income.
(10 mks)
2(a) Explain five factors that hinder entrepreneurial activities in a country.

(10 mks)
(b) Makhisa traders started a business on 1st January 2022 with cash in
hand sh. 50,000 and cash at bank sh. 19,000. His transactions during
the month of January, 2022 were as follows:
Jan 1 : Bought furniture worth sh. 10,000 by cash.
Jan 2 : Deposited sh. 5,000 cash in the business bank
account from the cash till.
Jan 5 : Sold goods to Michael worth sh. 7,900 on credit.
Jan 12 : Makhisa disposed off a van at sh. 70,000 receiving
Payment of sh. 27,000 by cheque and a balance in
cash.
Jan 15 : Paid rent sh. 1,700 cash.
Jan 16 : Paid salaries sh. 2,200 by cheque.
Jan 20 : Received donations sh. 15,000 by cheque.
Jan 22 : Withdrew cash sh. 10,000 for personal use.
Jan 28 : Transferred all cash into the bank except sh. 1,000.
Required:
Prepare a two column cash book for Makhisa traders for the month of
January, 2022.
(10 mks)
3(a) Explain five roles of middlemen in the chain of distribution.
(10 mks)
(b) Explain five principles of insurance.
(10 mks)
4(a) Explain five benefits of mobile banking to customers.
(10 mks)
(b) The following trial balance was extracted from the books of Atiti traders
for the year ended 31st December 2021.

Atiti Traders
Trial Balance
As at 31/2/2021

Details Dr (Shs) Cr (Shs)

Capital 250,000
Drawings 33,000
Stock (1/1/2021) 47,000
Purchases 300,000
Sales 420,000
Returns 4,000 7,000

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Carriage outwards 10,000

Carriage inwards 28,000
Discounts 4,000 14,000
Motor vehicle 130,000
Furniture 25,000 55,000
Creditors
Premises 100,000
Debtors 50,000
Bad debts 15,000
746,000 746,000

Additional information.
Stock at 31st December 2021 was valued sh. 55,000.
Required
Prepare
(i) Trading, profit and loss account for the year ended 31st December
2021.
(ii) Balance sheet as at 31/12/2021.
5(a) Explain five ways in which inflation can be controlled by the
government.
(10 mks)
(b) Explain five barriers to effective communication.
(10 mks)
6(a) Explain five disadvantages of using direct taxes to raise government
revenue.
(
10
mk
s)
(b) Explain five circumstances in which a firm may acquire monopoly
Power.
(10 mks)

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TRIAL 2
NAME______________________________ Index
Number._______________

Candidates Signature _________________Date

__________________________
Kenya Certificate of Secondary Education

BUSINESS STUDIES

565/2
Paper 2
2 ½ hours
Instruction to Candidates

a) Write your name and Index Number in the spaces provided above
b) Sign and write your name and index number in the spaces provided above
c) This paper consists of SIX questions
d) Answer any FIVE questions
e) The question paper has THREE printed pages
f) All questions carry equal marks
g) Candidates should check the questions paper to ascertain that all the questions are
there i.e. no missing questions
h) Candidate should answer the questions in English

FOR EXAMINER’S USE ONLY

Question Maximum Score Candidate’s Score

1. 20

2. 20

3. 20

4. 20

5. 20

6. 20

Total Score

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1 (a) Explain five ways in which insecurity negatively affects running of business activities

(10mks)

(b) Explain five circumstances under which a firm may find it necessary to locate near the
source of its materials. (10mks)

2. (a) Explain five circumstances that make it necessary for insurance companies to re-
insure.

(10 marks)

(b) Explain FIVE causes of inflation in an economy. (10 marks)

3. a) Discuss five factors to be considered when choosing a means of reproducing

documents in an office.
(10mks)

b). Discuss five ways of improving the efficiency of a warehouse. (10 Marks)

4. (a) Discuss five measures that the government may take to improve the volume of exports.
(10Mks)

(b) Explain five services which facilitate communications. (10mks)

5. (a) With an aid of a diagram illustrate a change in equilibrium points following a decrease
in demand and state three factors that may cause such change.
(10mks)

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(b) Explain FIVE principles of public expenditure. (10mks)

6. (a) Explain five measures that the government can take so as to improve the efficiency
of the road transport system in the country.
(10mks)

(b) The following balances were extracted from books of Maasai Traders for the year ended
31/12/2021

Rent 48,000
Lighting 7,200
Water 9,220
Salaries 75,000
Commission received 12,370
Discount allowed 4,600
Discount received 8,500
Gross profit 320,000
General expenses 98,000
Stock 25,250
Motor Vehicle 2,300,000
Furniture & equipment 650,000
Debtors 270,000
Creditors 396,400
Bank 200,000
Cash 50,000
Capital 3,000,000

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Prepare
1
(i) Profit and loss a/c for the year ended 31/12/2021 (52 marks)
1
(ii) Balance sheet as at 31/12/2021 (4 marks)
2

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TRIAL 3
KENYA CERTIFICATE OF SECONDARY EDUCATION

2 ½ Hrs

565/2 – BUSINESS STUDIES – PAPER 2

NAME…………………………………………………………………

ADM NO…………………CLASS…………………

Instructions to candidates

a) Write your name in the spaces provided.

b) The paper consist of Six questions
c) Answers any Five questions in the spaces provided.
d) All questions carry equal marks
e) Non programmable electronic calculator may be used.
f) Candidates should answer questions in English.

For Examiners use only

Question Maximum Score Candidates Score.
1.
2.
3.
4.
5.
6.
TOTAL

SCORE

1.a) Explain Five factors that one needs to consider when selecting an office layout. (10Mks)

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b) Outline Five measures that may be taken by the Kenyan government to promote her
exports. (10Mks)

2. a) There has been a general rise in prices of consumer goods and services in Kenya.
Explain Five negative effects of this trend. (10 Mks)

b) Highlight Five measures that the Kenyan government has put in place to facilitate an
efficient road transport. (10Mks)

3. a) Explain Four ways in which the government may positively influence / attract business
activities to a given area. (8Mks)

b) The following trial balance was extracted from the books of Daisy Traders as at
31/12/2021.

Daisy Traders
Trial Balance
As at 31st December 2021

A/C NAME DR (Shs) CR (Shs)

Purchases & Sales 275,000 390,000
Stock (1/1/2021) 30,000
Debtors 47,000
Commission 36,000
Returns 10,000 6,000
Carriage inwards 16,000
Carriage outwards 8,000
Bad debts 3,000
Wages 20,000
Rates 12,000
Buildings 450,000
Furniture 180,000
Bank overdraft 210,000
Insurance 19,000
Discounts 5,000 7,000
Drawings 25,000
Creditors 52,000
Cash at bank 250,000
Cash in hand
Capital 40,000 689,000

1,390,000 1,390,000

Additional information:

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Stock was valued at Sh.50,000 as at 31ST/12/2021.

Required:

I. Prepare Daisy Traders, Trading, profit and loss Account for the year ended
31/12/2021. (7Mks)
II. Balance sheet as at 31/12/2021. (5Mks)

4. a) Co-operative societies have become very popular today. Discuss Five features of a co-
operative society. (10Mks)

b) With the aid of a diagram, explain the effect of an increase in consumers’ level of
income on the equilibrium price and quantity. (10Mks)

5.a) Explain Five circumstances under which a country may experience low levels of national
income. (10Mks)

b) Explain Five ways in which insurance industry contributes to the development of a

country’s economy. (10Mks)

6. a) Explain Five measures that can be taken to reduce the level of unemployment. (10Mks)

b) Zakayo Traders had the following balances on 1st July 2012.

SHS.

Equipment 5,600

Bank 35,000

Debtors 28,000

Creditors 66,600

During the month the following transactions took place:

July 6TH – Purchased goods worth Sh.9,500 by cheque.

July 7TH – Paid creditors, Sh. 10,600

July 23RD – Received a cheque of Sh.22,00 for goods sold.

July 28TH – Withdrew Sh. 5,000 from the bank to pay salaries.

Required:

Open the relevant ledger accounts and extract a trial balance as at 30TH July, 2012. (10Mks)

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TRIAL 4
KENYA CERTIFICATE OF SECONDARY EDUCATION

565/2 – BUSINESS STUDIES – PAPER 2

NAME…………………………………………………………………

ADM NO…………………CLASS…………………

Instructions to candidates

g) Write your name in the spaces provided.

h) The paper consist of Six questions
i) Answers any Five questions in the spaces provided.
j) All questions carry equal marks
k) Non programmable electronic calculator may be used.
l) Candidates should answer questions in English.

For Examiners use only

Question Maximum Score Candidates Score.
1.
2.
3.
4.
5.
6.
TOTAL

SCORE

1.a) Explain Five factors that one needs to consider when selecting an office layout. (10Mks)

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b) Outline Five measures that may be taken by the Kenyan government to promote her
exports. (10Mks)

2. a) There has been a general rise in prices of consumer goods and services in Kenya.
Explain Five negative effects of this trend. (10 Mks)

b) Highlight Five measures that the Kenyan government has put in place to facilitate an
efficient road transport. (10Mks)

3. a) Explain Four ways in which the government may positively influence / attract business
activities to a given area. (8Mks)

b) The following trial balance was extracted from the books of Daisy Traders as at
31/12/2021.

Daisy Traders
Trial Balance
As at 31st December 2021

A/C NAME DR (Shs) CR (Shs)

Purchases & Sales 275,000 390,000
Stock (1/1/2021) 30,000
Debtors 47,000
Commission 36,000
Returns 10,000 6,000
Carriage inwards 16,000
Carriage outwards 8,000
Bad debts 3,000
Wages 20,000
Rates 12,000
Buildings 450,000
Furniture 180,000
Bank overdraft 210,000
Insurance 19,000
Discounts 5,000 7,000
Drawings 25,000
Creditors 52,000
Cash at bank 250,000
Cash in hand
Capital 40,000 689,000

1,390,000 1,390,000

Additional information:

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Stock was valued at Sh.50,000 as at 31ST/12/2021.

Required:

III. Prepare Daisy Traders, Trading, profit and loss Account for the year ended
31/12/2021. (7Mks)
IV. Balance sheet as at 31/12/2021. (5Mks)

4. a) Co-operative societies have become very popular today. Discuss Five features of a co-
operative society. (10Mks)

b) With the aid of a diagram, explain the effect of an increase in consumers’ level of
income on the equilibrium price and quantity. (10Mks)

5.a) Explain Five circumstances under which a country may experience low levels of national
income. (10Mks)

b) Explain Five ways in which insurance industry contributes to the development of a

country’s economy. (10Mks)

6. a) Explain Five measures that can be taken to reduce the level of unemployment. (10Mks)

b) Zakayo Traders had the following balances on 1st July 2012.

SHS.

Equipment 5,600

Bank 35,000

Debtors 28,000

Creditors 66,600

During the month the following transactions took place:

July 6TH – Purchased goods worth Sh.9,500 by cheque.

July 7TH – Paid creditors, Sh. 10,600

July 23RD – Received a cheque of Sh.22,00 for goods sold.

July 28TH – Withdrew Sh. 5,000 from the bank to pay salaries.

Required:

Open the relevant ledger accounts and extract a trial balance as at 30TH July, 2012. (10Mks)

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TRIAL 5
Name………………………………… ADM NO………………… CLASS…………….

Candidate’s Signature …………………………Date …………………………………

KENYA CERTIFICATE OF SECONDARY EDUCATION

565/2

BUSINESS STUDIES

PAPER 2

TIME: 2HOURS 30 MINUTES

INSTRUCTIONS TO CANDIDATES

• This paper consist of six questions

• Answer any FIVE questions
• All questions carry equal marks
• Write your answers in the booklet provided

FOR EXAMINER’S USE ONLY

Question Candidates score

6
TOTAL SCORE

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1 .a) Explain Five factors that management of a business should consider before buying
an

office machine. (10Marks)

b) Outline five differences between a public corporation and a private limited

company. (10 Marks)

2. a) Explain Five reasons why a country may experience balance of payments

disequilibrium . (10Marks)

b) The following information was obtained from the books of Powermax Stores for
the month of June 2015.Post the information to the relevant ledger
accounts and balance them off. (10Marks)

June 1 : Balance in Cash shs. 60,000 , Bank shs 220,000 , Debtors shs 95,000
and

Creditors shs 80,000

June 5 : Received a cheque of shs. 75,000 from debtors.

June 10 : Drew a cheque of shs 59,000 in respect of creditors.

June 15 : Obtained a loan from KCB shs 130,000 ,money was deposited
directly

to the account.

June 24 : Bought land for shs 217,000 ,paying shs 200,000 by cheque and the
rest

In cash.

June 28 : Paid creditors in cash shs 1,000.

June 30 : Deposited all cash into the bank except shs 4,000.

3. a) State and explain Five guidelines that governs a good tax system. (10Marks)

b) The type of advertising largely depends on the objectives to be achieved.

Explain Five types of advertising. (10Marks)

4 a) Highlight Five ways in which the Kenyan government may increase the amount
of

money in circulation. (10Marks)

b) Discuss Five factors that determine the amount of premiums charged in a life

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Assurance cover. (10 Marks)

5 a) Explain Five factors that hinders entrepreneurial practices in Kenya today.

(10Marks)

b) With a well labeled diagram, explain the effect of an increase in demand on the
equilibrium price and quantity. (10 marks)

6. a) Outline Four reasons why mobile phones (cell phones) have become a popular
means of communication . (8 marks)

b) The following Trial balance was extracted from the books of Mwakio Traders on
31st

Dec 2005.

Mwakio Traders

Trial Balance
As at 31st December 2005

Name of Account Dr (Shs) Cr (Shs)

Purchases and Sales 70,000 95,000

Carriage outwards 4,000
Stock (1/1/2005) 12,500
Fixed Assets 82,000
Debtors and 10,500 8,500
Creditors 16,800
Salaries 10,300
Bank overdraft 1,500 12,400
Returns 2,500
Cash in hand 5,200
General expenses 88,800
Capital 205,000 205,000

Additional information:

Closing stock was valued at shs 6,500.

Prepare : i) Trading, profit and loss Account for the year ending 31st Dec 2005. (8Marks)

ii) Balance sheet. (4Marks)

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TRIAL 6
Name ………………………................................................ Index
number………………………………

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School ……………………………………………………. Candidate’s

Sign………………………………

Date……………………………………………

565/2
BUSINESS STUDIES
PAPER 2

TIME: 2 ½ HOURS

Kenya Certificate of Secondary Education (K.C.S.E)

565/2
BUSINESS STUDIES
PAPER 2
TIME: 2 ½ HOURS

INSTRUCTIONS

1. Write your NAME, SCHOOL and INDEX NUMBER in the spaces provided.
2. Answer ANY FIVE questions provided in the answer booklet provided.
3. This paper consists of 6 questions
4. All answers must be written in English.

FOR EXAMINERS USE ONLY

Questions 1 2 3 4 5 6 TOTAL
Mark

This paper consists of 3 printed pages. Candidates should check the question paper
to ascertain that all pages are printed as indicated and that no questions are missing.

1. a) Explain five characteristics of underdeveloped countries. (10

marks)

b) Discuss five measures that can be used to reduce unemployment in Kenya (10
marks)

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2. a) Explain five ways in which the central bank regulates the operations of commercial banks
in Kenya. (10
marks)

b) Explain five roles played by insurance industry in promoting the development of Kenyan
economy. (10
marks)

3. a) The following trial balance was extracted from the books of Baite Traders on 31st August. 2009.

Dr (sh) Cr (sh)
Sales 350,000
Purchases 160,000
Cash at bank 290,000
Return inwards 5,000
Carriage inwards 20,000
Carriage outwards 14,000
Salaries and wages 10,000
Debtors 56,000
Creditors 90,000
Stock 35,000
Machinery 265,000
Rent 25,000
Discount received 18,000
Lighting and heating 12,000
Building 240,000
Advertising 13,000
Drawings 3,000
Capital 667,000
1,150,000 1,150,000
Additional information;

Stock on 31st August. 2009 was valued at sh 50,000.

Required;

Prepare Trading profit and loss account for the year ended 31st August. 2009. (12
marks)

b) Savings and credit cooperatives have been registering an increasing number of members.
Explain four reasons for such a development.
(8 marks)

4. a) Highlight five roles of the Nairobi Stock exchange as a market for securities. (10
marks)

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b) During a trader’s workshop, a speaker presented a speech on ethical issues in business.

Highlight some ethical issues that he may have raised, affecting business.
(10 marks)

5. a) Discuss five benefits of filing office documents to an organisation. (10

marks)

b) Explain five benefits that a country derives from transporting oil through pipeline. (10
marks)

6. a) The income approach is one of the methods used to measure the national income of the
country.
Explain four types of incomes included in this approach. (8
marks)

b) On 1st June 2009, Muli Enterprises had cash in hand sh. 87,000 and cash at bank
sh. 250,000.During the month, the following transactions took place.

June 2 Sales in cash sh. 50,000

3 Paid salaries sh.101, 500 by cheque.
6 Received a cheque for sh. 76,800 from Mwelu after allowing her a cash
discount of 4%.
12 Bought office furniture by cheque sh. 85,000
16 Settled Musau’s account of sh. 40,000 in cash, having deducted shs 800
cash discount.
18 Received a cheque for shs 150,000 in respect of cash sales.
21 Paid wages shs 24,000 in cash.
22 Withdrew shs 30,000 from bank for office use.
25 Withdrew shs 5000 cash for private use.
28 Received shs 16500 cash from Kasiva in settlement of her account less
shs 660 cash discount.
30 Deposited all the money into bank except shs 25,000

Prepare a three column cash book and balance it off. (12

marks)

TRIAL 7
NAME……………………………………………………………… INDEX NO……………...................

SCHOOL……………………………………………………............CANDIDATE’S SIGN……………
DATE…………………………….....

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565/2

BUSINESS STUDIES

Paper 2

Form Four

TIME: 2½HOURS

FORM FOUR
Kenya Certificate of Secondary Education. (K.C.S.E)
565/2

BUSINESS STUDIES

TIME: 2½HOURS

INSTRUCTIONS TO CANDIDATES

a) Write your name, and Index number in the spaces provided after the questions.
b) Sign and write the date of examination.
c) This paper consists of Six questions.
d) Answer any five questions in the spaces provided after the questions.
e) All questions carry equal marks
f) Candidates should answer the questions in English.
g) This paper consists of 3 printed pages, candidates should check to ascertain that all
pages are printed as indicated and that no question is missing.

FOR EXAMINER’S USE ONLY

Question Maximum Score Candidate’s Score

1 20
2 20
3 20
4 20
5 20
Total Score 100

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1. a.) As business expands, it experiences economies of scale such as division of

labour and specialization. Explain Five benefit of the economy of scale mentioned
to the business
(10mks)
b.) Raju operate a large hardware business in a town in Kenya. A part from motor
vehicle insurance policies, highlight giving reasons, five insurance policies that may be
beneficial for this business.
(10mks)

2. a.) Explain Five guidelines followed when using public funds

(10mks)

b.) Explain Five problems encountered in measuring National income using output
approach

(10mks)

3. a.) Students of Kiburu mixed day secondary school undertakes business studies as a
subjects in their curriculum. Explain Four benefits of this to the local community
(8mks)

b.) The following balances were extracted from the books of Katiba Traders for the year
ended 31st Dec 2012.

Carriage inwards 27,900

Carriage outwards 29,400

Purchases 60,000

Sales 120,000

Stock (31/12/2012) 26,500

Sales return 18,500

Stock 1/1/2012 35,000

Purchases return 45,000

Rent income 100,000

Discount received 6,800

Salaries 14,400

Rates 36,900

Electricity 25,000

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Bad debt written off 2000

Discount allowed 6,900

Required; Prepare trading, profit and loss account for the year ended 31st Dec
(12mks)

4 a.) The government of Kenya is in the process of extending standard gauge way the
standard rail Gauge way to Kisumu. Explain the benefits of this venture to the Kenya
economy
(10mks)

b.) The diagram below show the population and output per capita of China

Explain five advantages China would get in her total population is found in the part marked Y

(10mks)

5. a) ABZ limited operates a wholesale business .During the month of March 2021. The
company carried out the following transactions

March1: Credit sale to Ochupe and Njeri were Sh. 200,000 and 180,000 respectively

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March2: Credit purchase from Chebet sh. 150,000, Wambui sh.700,000 , Alfred sh 185,000.
He also paid an advertisement expenses by cast sh. 48,000.

March 5 : Credit sales to Abdalla sh 175,000, Mwangi sh 320,000, Ochupe sh. 135,000

March 8 : Goods returned by Ochupe sh 2800 and Njeri sh, 3100

March 12 : Goods returned by ABZ limited to Chebet sh, 30,000 and Alfred 25,000

March 27 :Paid Wambui her debt in cash after deducting a cash discount of 5%

March 28 : Received rent of sh 5,200 by bank

March 29 : Sold goods on credit to Njeri shs 220,000 and Njau shs 150,000

March : Goods returned by Njau shs 2,300

Required : Prepare relevant day books

(12mks)

5. b) Explain five advantages of M-pesa

(8mks)

6. (a) Using a well labeled diagram, illustrate, the effect of reduced cost of production on
equilibrium price and output
(10mks)

b.) Explain five emerging issues in form of business units

(10mks)

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TRIAL 8
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NAME__________________________________INDEX NO.________________

DATE__________________________________SIGNATURE________

ADM NO.______________

BUSINESS STUDIES PP 2
Instructions to candidates

➢ This paper consists of six questions

➢ Answer any five questions
➢ All questions carry equal marks
➢ Write your answers in spaces provided.

For Examiner’s Use Only

Question Maximum score Candidate’s Score

1 20
2 20
3 20
4 20
5 20
6 20

TOTAL SCORE

1 a)Describe five features of economic resources

(10marks)

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b)Explain five internal economies of scale that a firm can enjoy as its scale of
production increases.
(10marks)

2a) Explain five important of filing documents in an organization

(10marks)
b) Explain five factors that determine the size of a firm
(10marks)

3a) The following trial balance was prepared from the books of Muranga traders as
at 31st Dec 2018

Muranga traders
Trial balance
As at 31st Dec 2018
Dr (shs) Cr (shs)
Sales 900,000
Purchases 500,000
Returns 60,000 20,000
Carriage inwards 30,000
Carriage outwards 3,000
Stock (jan 2018) 100 ,000
Rent 12,000 60,000
Delivery van 300,000
Bank 60,000
Creditors 50,000
Debtors 100 000
Interest 18,000
General expenses 7,000
Capital 178,000

1,190,000 1,190,000

Stock on 31st Dec 2018 was at sh.130,000 required,

Prepare a trading profit and loss account for the year ended 31st Dec 20189.
(10marks)

3b) Explain any five limitations of advertising goods in newspapers

(10marks)

4a) Explain 5 ways of correcting balance of payment deficit.

(10marks)

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b)Explain five factors that are likely to lead to high birth rate in Kenya. (10
marks)

5a)Explain five challenges that may be faced by a producer who sells goods directly to
consumers. ( 10 marks)

b) On March 1 2017, Lyon had cash in hand sh.87,000 and cash at bank sh.250,000.
During the month, the following transactions took place:

2017
March 2: Cash sales sh.60,000
3: Paid salaries sh.101,500 by cheque
7: Received a cheque of sh.76,000 from Henry after allowing him a
cash discount of 5%
13: Bought office furniture by cheque sh.86,000
17: Settled Marita’s account for sh.34,200 in cash, having deducted
sh.800 cash discount.
20: Received a cheque for sh.165,000 in respect of cash sales.
22: Paid wages sh,25,000 in cash.
24: Withdrew sh.32,000 from the bank for office use.
25: Withdrew sh.4000 cash for personal use
29: received sh.17,000 cash form Alvin in settlement of his account
less sh.1000 cash discount.
31: Deposited all the money into the bank except sh.24,000.

Required:
Prepare a three column cash book duly balanced. (10 marks)

6a) Differentiate between life assurance and property insurance (10marks)

b) Explain five circumstances under which personal selling may be most
appropriate.
(10 marks)

TRIAL 9

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565/2

BUSINESS STUDIES

Paper 2
2 Hours 30minutes

NAME:…….………….………………..……ADM
NO…………….DATE………
CLASS:………………….…..SIGNATURE………………………..………
1. a) Explain five benefits of operating a public limited company (10marks)

(b) Discuss five ways in which commercial banks facilitate trading activities in the
community. (10 marks)

(2a) Explain five factors that an entrepreneur would consider when evaluating a business
opportunity. (10 marks)

(b)Explain five sources of public finance. (10 marks)

3a) Explain five methods that the government of Kenya may adopt in its effort to control high
population (10 marks)

b) Explain the various ways in which computers have improved efficiency in business
organizations (10 marks)

(4a) On 1st March 2017 Staicy Enterprises had Ksh 7,800 cash in hand and a bank overdraft
of Ksh 24,300. During the month, the following transactions took place.
2017
March 2: cash sales paid directly into the bank sh 165,000
4: cash sales sh. 50,000
6 Bought goods for ksh 15,000 and paid by cheque
7: Bought goods on credit worth 5000 from Jane
9: received a cheque for sh 18,000 from Amollo
13: Paid insurance premiums sh 16,000 in cash
15: Paid Kamotho by cheque sh 9,700 after deducting 3% cash discount
21 Withrew sh 30,000 from a bank for office use
24: received a cheque for ksh 23,750 from Rotich having allowed him 5% cash
discount
25: Paid wages in cash sh 20,000
28: A cheque that was received from Amollo was dishonoured
30: Banked all the cash, except sh 3,000
Required:
Prepare a three column cashbook and balance it off on 30th March 2017 (12mks)

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4b) Apart from sources of demand and supply, describe any other four ways in which the
price
of a commodity can be determined in the market (8 marks)

5a) Explain five ways of improving the efficiency of a warehouse (10 marks)

5b) Explain five problems of using per capita income to measure the standards of living of
people in a country (10 marks)

6a) Explain five means of payment available to traders in Kenya. (10marks)

6b) the following balances were extracted from the books of Mwanabiashara traders as at
31st December 2015

Purchases 480,000

Carriage inwards 29,000

Returns outwards 80,000

Sales 700,000

Stock 1/1/2015 90,000

Returns inward 30,000

Salaries 13,000

Electricity 10,000

Telephone 16,400

Rent 17,000

Carriage Outwards 20,200

Insurance 30,200

General Expenses 28,400

Stock 31/12/2015 12,600

Discount received 16,800

(i) Prepare a trading, profit and loss account for Mwanabiashara traders for the period
ended 31st December 2015. (8 marks)

(ii) Calculate the rate of stock turn over. (2 marks)

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