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Lodwar High School Business Studies Paper 2 Question Paper

Lodwar High School Business Studies Paper 2

Course:Secondary Level

Exam Year:2012

LODWAR HIGH SCHOOL PRE-MOCK-2012
BUSINESS STUDIES
PAPER 2

Instructions
Answer any FIVE questions

1. a) Explain five circumstances under which a seller may send a debit note to a buyer (10 mks)
b) State and explain FIVE methods used by the government to protect consumers from unscrulous traders (10 mks)

2. a) Outline FIVE factors which influence the level of national income of a country (10 mks)
b) Explain FIVE reasons why there is a need for Kenyan businesses to practise business ethics (10 mks)

3. a) State and explain FOUR types of ulities created during the production process (8 mks)
b) With the aid of diagrams show the effects of the shift of demand and supply curves on equilibrium price and quantity under the following situations
i. Decrease in demand(6 mks)
ii. Increase in supply (6 mks)

4. a) Explain FIVE ways in the insurance industry promotes the growth of enterprises (10 mks)
b) Kamau enterprises had the following balances in their books of accounts on November 1st 2011

Cash in hand Ksh.10,000
Cash at bank Ksh.150,000
The following transactions took place during the month
Nov 3: cash purchases worth Ksh.2,000
Nov 6: cash sales to Kavuo Ksh.2,000
Nov 7: bought office equipment paying by cheque Ksh.40,000
Nov 9: paid electricity bill by cash Ksh.500
Nov 11: received a cheque from Dindi, a debtor Ksh.2,000
Nov 13: received cash Ksh.1,000 from Ekai a debtor
Nov 15: drew Ksh.4,000 from bank office use
Nov 16: Kamau took cash Ksh.3,000 for his personal use
Nov 17: made credit purchases Ksh.2,500 from Nzuki.

Required;
Prepare a two column cashbook and balance it off (10 mks)

5. a) Explain FIVE reasons why governments discourage localization of firms (10 mks)
b) State and explain FIVE features of a bonded warehouse (10 mks)

6. a) The following balances were obtained from the books of Beauty Care Enterprise on 31st March 2011
Fixed assets 42,000
Stock 48,000
Debtors 50,000
Bank overdraft 25,000
Creditors 40,000
Cash in hand 32,000

During the month of April the following transactions took place
i. Brought a motor vehicle on credit valued at Ksh.80,000 from general motors
ii. Withdrew Ksh.28,000 for personal use.

Required; prepare a balance sheet as at 30th April 2011 (10 mks)
b) State and explain FIVE clauses of a memorandum of association of a company (10 mks)

Lodwar High School Business Studies Paper 2 Question Paper

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