- Explain five circumstances under which a producer may sell goods directly to the consumer (10 marks)
- Explain each of the following terms of sale as used in international trade: (10 marks)
- Cost and Freight
- In Bond
- Explain five factors that may discourage entrepreneurship in Kenya. (10 marks)
- Explain five demerits of indirect taxes.(10 marks)
- Explain five errors that may not be detected in a trial balance. (10 marks)
- Explain five documents prepared by the seller after receiving an order up to the point of delivery.(10 marks)
- Explain five reasons that may make a firm operate on a small scale (10 marks)
- The following information was extracted from the books of Ushirika Traders as at 31st December 2020.
Gross profit - Ksh 94,000
Commission Received - Ksh 32,000
Carriage Outwards - Ksh 8,000
General Expenses - Ksh 15,000
Discount Received - Ksh 29.000
Total Fixed Assets - Ksh 1,110,000
Insurance - Ksh 17,000
Capital - Ksh 490,000
Drawings - Ksh 37,000
Long Term Liabilities - Ksh 610,000
Discount Allowed - Ksh 12,000
Commission Allowed - Ksh 4,000
Current Liabilities - Ksh 162,000
Current Assets - Ksh 192,000
Salaries - Ksh 22,000
- Prepare a Profit and Loss Account (6 marks)
- Working capital(1 mark)
- Return on Capital Employed. (3 marks)
- Explain five reasons that make it necessary for the Government to train business people. (10 marks)
- Explain five problems that the Kenyan Government may experience when implementing the Vision 2030. (10 marks)
- Explain five advantages of written communication. (10 marks)
- Use the transaction given below to prepare Patel Traders Two Column Cash Book for the month of February 2020. (10 marks)
1st Feb. : Had Ksh 1,200 cash in hand and a bank overdraft of Ksh 1000
2nd Feb. Used cash to pay water bill Ksh 200, electricity Ksh 100 and wages Ksh 400
3rd Feb.: Received a cheque of Ksh 14,000 from Daisy
5th Feb. : Sold goods worth Ksh 7,000 in cash.
7th Feb. : Paid for goods bought for resale worth Ksh 5,000 by cheque.
9th Feb.: Received a cheque of Ksh 10,000 from the Cooperative Society as earning from dividends.
10th Feb.: Withdrew Ksh 2,000 from the bank for family use.
13th Feb.: Received a cheque of Ksh 10,000 from Petro.
15th Feb.: Deposited Ksh 1,000 from the office into the business bank account.
17th Feb.: Paid Manu by cheque Ksh 1,000
27th Feb.: Used the money in the bank to purchase furniture leaving only a balance of Ksh 2,000