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Thika Provincial Schools Examinations Business Studies Paper 2 Question Paper
Thika Provincial Schools Examinations Business Studies Paper 2
Course:Secondary Level
Institution: Kcse question papers
Exam Year:2010
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.
Sh.
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 13,500
Salaries 11,000
Telephone charges 2,500
Water bills 1,050
Creditors 7,550
Debtors 10,500
Electricity expenses 1,000
Drawings 9,750
Insurance paid 500
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.
1/1/2006 31/12/2006
Motor vehicles 80,000 145,000
Debtors 25,000 28,000
Creditors 18,000 20,000
Outstanding standing 6,000 8,000
Rent received in advance 10,000 4,000
Office machine & equipments 35,000 31,000
Stock 6,000 8,000
Premises 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
359,000 Cash at bank b/d 18,000
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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