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KCSE Business Studies Paper 2 – Kabarak High School Mock 2015

KCSE Business Studies Paper 2 – Kabarak High School Mock 2015

Mock 2015 – Kabarak High School

Business Studies Paper 2

Answer any five questions only.

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

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

 20 marks


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.


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

 20 marks


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

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

 20 marks


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)

 20 marks


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)

 20 marks


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






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 30th April, 2006 was shs 49,980.


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

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

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

 20 marks

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