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National Mock / Post Mock Examination Business Education P1 Question Paper
National Mock / Post Mock Examination Business Education P1
Course:Secondary Level
Institution: Kcse question papers
Exam Year:2010
1. State four factors to consider before choosing a type of business finance. (4mks)
2. State three ways in which the government could encourage Kenyans to start small business. (3mks)
3. State four errors that can’t be revealed in the trial balance. (4nmks)
4. Give four drawbacks which made barter trade to be unpopular as a method of exchange. (4mks)
5. Outline four problems suffered by insuarance companies in Kenya. (4mks)
6. Outline four reasons that rendered consumers ineffective in protecting themselves against greedy traders. (4mks)
7. Outline four economic importance of National Resources. (4mks)
8. Mention four factors that would determine supply of a commodity in the market. (4mks)
9. State four factors that should be considered before buying office machine. (4mks)
10. For each of the following activities indicate in the space provided whether it is direct or indirect production.
Activity. Type of production.
(i) mother preparing supper for her family. ----------------------------
(ii)A doctor attending a patient at a clinic. ----------------------------
(iii)Producing maize for export ----------------------------
(iv)Father preparing his broken chair at home. -------------------------
11. The following information relates to Baba Dogo wholesalers for the year ended 30th October 1996.
Sales - 33,550
Opening stock - 4,000
Purchases - 39,000
Mark up - 25%
Closing stock - 16,000
Margin - 20%
Sales returns - 2,550
Calculate: (i) Cost of sales. (2mks)
(ii) Rate of stock turnover. (2mks)
(iii)Net sales
12. Highlight three advantages enjoyed by a firm if it is located in a place where there are other firms. (3mks)
13. State four disadvantages of sole proprietorship. (4mks)
14. State four ways used by the central Bank to regulate operations of commercial Banks in Kenya. (4mks)
15. From the following details of Mwembeni Enterprises.
Calculate the value of capital and prepare it’s Balance sheet.
Bank over draft - 18,000
Cash - 7,000
Creditors - 9,000
Stock - 65,000
Loan - 27,000
Premises - 101,000
Capital - ? (5mks)
State the accounts to be credited and debited in the following business transactions given:
TRANSACTION A/C DEBITED A/C CREDITED
(i) Started business with
sh 30,000 in Bank.
(ii) Bought Equipment in cash of sh. 30,000
(iii) Purchased stock of sh. 50,000 Payment being made by a cheque
(iv) Transferred shs. 50,000 from Bank to cash.
17. Highlight four advantages of advertising to the consumers. (4mks)
18. Containers pulled by train (railtainer) is a recent development in transport in Kenya. Give four advantages our country derives from it. (4mks)
19. State three remittance services offered by the post office. (3mks)
20. Enter the following transactions in the cash Book given below and balance it off as at 30th April 1998.
(i) 20th April: B b/f cash - 12,000
Bank – 35,000
(ii) 22nd April – Sale of an old furniture for cash at Ksh. 8000.
(iii)24th April – Cash sales shs. 10,000.
(iv) 28th April – Withdrawal of cash 1500 for personal use.
(v) 30th April – Purchase of goods worth shs. 15000 paying by cheque sh. 10,000 and
Balance by cash sh. 5000. (6mks)
21. Ouline four factors that causes barrier to effective communication. (4mks)
22. The following information relates to Makamba Traders:
Stock (31.10.90) – 40,000
Sales returns - 3,000
Purchase returns – 2,000
Sales - 300,000
Stock (1.10.90) - 30,000
Purchase - 180,000
Using the information above calculate :
(i) Net sales (1 ½ mk)
(ii) Cost of goods sold (3 ½ mks)
(iii)Gross profit (1mk)
23. Outline four differences between a bonded warehouse and a private warehouse. (4mks)
24. What are the accounts involved in recording of stock changes in the accounts. (4mks)
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