NAME___________________________________ Index Number._______________________
Candidates Signature _________________
Date _______________________________
565/2
BUSINESS STUDIES
Paper 2
JULY/AUGUST 2015
Time 2 ½ hours
MWINGI CENTRAL SUB-COUNTY FORM FOUR JOINT
EXAMINATIONS
Kenya Certificate of Secondary Education
BUSINESS STUDIES
Paper 2
2 ½ hours
Instruction to Candidates
a)
b)
c)
d)
e)
f)
g)
Write your name and Index Number in the spaces provided above
Sign and write your name and index number in the spaces provided above
This paper consists of SIX questions
Answer any FIVE questions
Write your answers in the spaces provided after question six
All questions carry equal marks
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
1.
2.
3.
4.
5.
6.
Maximum Score
20
20
20
20
20
20
Total Score
© 2015 Mwingi Central Sub-County Joint Examinations
Candidate’s Score
1.
2.
(a)
Kenya has been relying on Coffee as a key driver of her economy. Explain FIVE
benefits that may accrue to her due to this specialisation
(10 mks)
(b)
Explain FIVE ways in which a Country’s labour force can be improved to promote
economic growth.
(10 mks)
(a)
Explain FIVE factors that determine the amount of money held for precautionary
purposes
(10 mks)
(b)
Kitinga Enterprises runs a general Merchandise business. The transactions during
the month of June 2014 were as follows:
2014
June 1
-
June 4
-
June 8
-
June 10
June 12
-
June 15
June 16
June 18
June 19
June 25
June 27
-
June 28
June 29
June 30
-
Bought on credit from Orina Ltd. goods worth shs. 100 000, received
a 20% trade discount.
Sold goods on credit to Rono Ltd. shs. 30 000 and allowed them a
10% trade discount.
Sent Rono Ltd. a credit note for goods returned, which had a value of
shs. 30 000.
Sold goods on credit to Akinyi shs. 60 000
Purchased goods from Wamalwa ltd for shs. 100 000 and he allowed
a 30% trade discount.
Purchased goods on credit from Nyambura shs. 45 000
Sent Akinyi a credit note for goods returned worth shs. 10 000
Wamalwa Ltd. sent us a credit note for sh.30 000 for goods returned.
Received a credit note for goods returned to Orina worth sh.25 000
Sold goods to Wairimu on credit sh. 25 000
Sent Wairimu a credit note for sh.5 000 to rectify an overcharge on
their invoice.
Sold goods on credit to Rono for sh. 56 000
Purchased a Motor Van on credit from Awori Ltd. worth shs. 80 000
Sold on credit Old machinery to Nairobi Trading Company for
sh.35 000 (prior to this owned machines worth shs. 100 000
Required: Make the necessary entries in the relevant books of original entry
(10 mks)
(NB. Posting to the ledger Accounts is not necessary)
3.
4.
(a)
Outline FIVE causes of Balance of payments disequilibrium
(b)
Describe FIVE channels of distribution that may be followed by imported
manufactured goods
(10 mks)
(a)
Explain FIVE types of unemployment
2
(10 mks)
(10 mks)
(b)
The following trial balance was extracted from the books of Mwelu Traders on 30th
April 2015
Account name
Sales
Purchases
Stock on 1/5/2014
Carriage outwards
Carriage inwards
Returns inwards
Return outwards
Salaries
Electricity
Rent
Sundry Expenses
Equipment
Furniture
Debtors
Creditors
Bank
Cash
Drawings
Capital
Dr
Cr
186 000
115 560
37 760
3 260
2 340
4 400
3 550
24 470
6 640
5 760
12 020
24 000
6 000
45 770
30 450
38 760
1200
20 500
348 440
128 440
348 440
Stock as at 30th April 2015 was Shs. 49 980
Required:
5.
6.
Prepare Trading profit and Loss Account for the period ending
30th April 2015.
(10 mks)
(a)
Highlight FIVE differences between Insurance and gambling
(10 mks)
(b)
Explain FIVE principles of a good tax system
(10 mks)
(a)
Explain FIVE factors that influence the level of National income of a Country
(10 mks)
(b)
Explain FIVE Money transfer facilities provided by Commercial Banks
This is the last printed page
3
(10 mks)