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2010 KCSE Business Studies Revision P2-003

07 Nov

2010 KCSE Business Studies Revision P2-003

565/2

BUSINESS STUDIES PAPER 2

Time: 2 ½ Hours

INSTRUCTIONS TO CANDITATES:

  • Answer any five questions.
  • Write your answers in the answer booklet provided.
  • All questions carry equal marks

1.   (a)  Explain five problems that are likely to be experienced if intermediaries                              are eliminated from the chain of distribution.                                                                                    [10 marks]

(b)  Explain five roles of a commercial attachee in promoting international                                trade.                                  [10 marks]

2.   (a)  Explain five reasons as to why oligopoly markets arise.                                 [10 marks]

(b)  The following balances were extracted from the books of Juja Traders                                            on 31st December 2009.

ksh

Opening stock

30,000

Equipment at cost

63,000

Purchases

85,500

Sales

104,000

Discount received

3,750

Returns outwards

12,500

Returns inwards

2,500

Salaries

1,050

Telephone charges

7,550

Water bills

10,500

Creditors

1,000

Debtors

9,750

Electricity expenses

500

Drawings

13,500

Insurance paid

11,000

Additional information:

i)        Closing stock was valued at sh. 15,000.

ii)      Telephone charges prepaid sh. 550

iii)    Outstanding water bills sh. 650

iv)    Depreciation on equipment 10% p.a. on cost.

v)      Carriage inwards and carriage outwards sh. 5,500 and 5,000 respectively.

Prepare:

Juja Traders profit and loss account for the year ended 31st December 2009.                                                                        [10 marks]

3.   (a)  Explain five problems associated with the output approach in the                                        computation of national income of a country.          [10 marks]

(b)  The following are transactions that took place during the month of                               June 2009 for Mr. Ali.

June 1  Balance of cash at bank was sh. 25,000 and cash in hand                                                                      was sh. 10,000.

June 2  Bought goods in cash sh. 1000

June 3  Paid rent by cash shs. 6000

June 4  Received cheques from the following debtors after allowing a                                                        2% discount in each case Jane sh. 980, Willison sh. 1960.

June 8  Paid the following accounts by cheque in each case deducting                                                        a 5% discount.  Wangari sh. 3,000 Mati shs. 1,200.

June 13       Bought a computer by cheque sh. 10,000.

June 20       Withdrew cash sh.1,000 for private use.

June 25       Cash saves sh. 2,000.

June 26       Banked cash amounting to sh. 1,000.

June 29       Received sh. 3,000 cash from Wanyonyi who is a credit                                                                  customer.

Prepare:    A three column cashbook duly balanced.    [10 marks]

4.   (a)  Explain any FOUR factors that may be used in determining the size of a                            firm.                                         [8 marks]

(b)  The following information relates to Kagendo Trader as per the dates                                             shown.

01-01-06

31-12-06

Premises

80,000

145,000

Office machine & equipments

25,000

28,000

Stock

18,000

20,000

Rent received in advance

6,000

8,000

Outstanding standing

10,000

4,000

Creditors

35,000

31,000

Debtors

6,000

8,000

Motor vehicles

150,000

150,000

Kagendo had prepared a summary of cash transaction for the year 2006 as shown below.

Cash book summary
Cash in hand b/d

5,000

Salaries

101,000

Cash at bank b/d

46,000

Drawings

12,000

Debtors

90,000

Creditors

50,000

Cash sales

102,000

Cash purchases

70,000

Rent

116,000

Motor vehicle

85,000

Insurance & rates

15,000

Cash in hand c/d

8,000

18,000

359,000

359,000

Required: Prepare Kagendo’s trading profit and loss a/c for the year ended 31st Dec. 2006 and a balance sheet as at 31st Dec. 2006. [12 marks]

5.   (a)  Outline five changes that may take place when a country is                                                 experiencing economic development.                                  [10 marks]

(b)  Explain five factors that may lead to a deficit in balance of payment in a                            country.                              [10 marks]

6.   (a)  It has been the will of the government of Kenya to create 500,000 jobs per year.  Explain five reasons which have hindered the achievement of                                                            this goal.                                                   [10 marks]

(b)  Explain five importance of filing documents in an organization.

[10 marks]

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END

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2010 KCSE Business Studies Revision P2-003 marking scheme

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4 Comments

Posted by on November 7, 2010 in Business Studies, Paper 2

 

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4 responses to “2010 KCSE Business Studies Revision P2-003

  1. ORIGIH

    November 8, 2013 at 6:26 am

    THIS SITE HAS BEEN OF MCH HELP TO ME,I WAnt to appriciate designers pls al th staffs.

     
  2. Lukestar Danielz

    August 5, 2014 at 12:42 am

    Need Their Answers Plsss

     
    • revpalace

      August 8, 2014 at 10:42 pm

      Answer sheets are each placed as link beneath each question paper respectively.

       

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