KCSE Business Studies Paper 2 – Kabarak High School Mock 2015

a) Explain five benefits of direct production. (10marks)

b) Explain five differences between private limited company and partnership forms of Business units. (10marks)

a) Discuss five factors that Nakuru county government may consider before spending county Funds. (10marks)

b) The following information relates to Maralal Traders for the month of May 2014.

May 1: Balance brought forward:

Cash Shs. 180,000

Bank Shs. 450,000 (Cr)

3: Received a cheque of 1,500,000 from Mpasha, a debtor

7: Cash sales Shs. 280,000

11: Jolloimat, a creditor of Shs.600, 000 was paid by cheque of sh 400,000 and the balance by cash.

14: Received commission in cash sh. 150,000

17: A debtor, Leteipa, paid his account of 185,000 by cheque less 2% cash discount.

19: Paid the following expenses by cheque:

Rent Shs. 75,000

Electricity Shs. 32,000

Water Shs. 25,000

21: Withdrew Shs. 100,000 from bank for personal use

24: Paid cash Shs 133,280 to Kinai after deducting a cash discount of 2%

25: Received a cheque of sh. 200,000 from Kiyapi, a debtor

28: Paid Salaries Shs. 120,000 by cheque.

31: Banked all cash except sh. 50,000.

Required:

Record the above transactions in a three column cash book. (10marks)

a) Describe five types of unemployment. (10marks)

b) Explain five problems a country may encounter when measuring national income using the output approach. (10marks)

a) Explain five factors that encourage entrepreneurial development in Kenya. (10marks)

b) By use of diagrams, show the effects on the equilibrium price and output due to increase in demand and supply respectively. (10marks)

a) Explain five benefits that Kenya as a country may achieve by adopting 2030 Millennium development goals. (10marks)

b).Discuss five reasons why a manufacturer may sell directly to consumers. (10marks)

a) The following trial balance has extracted from the books of Bishar Retailers on 30^th April, 2006.

Dr shs	Cr shs
Sales	186,000
Purchases	115,560
Stock 1.5.2005	37,760
Carriage outwards	3,260
Carriage inwards	2,340
Returns outwards	3,550
Returns inwards	4,400
Motor expenses	6,640
Rent	4,560
Salaries and wages	24,490
General expenses	12,000
Rates	1,200
Equipment	60,000
Machinery	31,960
Trade debtors	45,770
Trade creditors	30,450
Bank	38,760
Cash	12,000
Drawings	20,500
Capital	_______	128,440
348,440	348,440

Stock at 30^th April, 2006 was shs 49,980.

Required;

i) Prepare Trading, profit and loss Account for the year ended 30^th April 2006. (7marks)

ii) Balance as at 30^th April 2006. (5marks)

b) Explain four forms of economic integration. (8marks)