BUSINESS STUDIES Paper 2 Questions - KCSE 2022 Past Papers

QUESTIONS

1.                      
   1. Explain five circumstances under which a bank may dishonour a cheque. (10 marks)
   2. Explain five factors that may lead to an increase in the level of National Income of a country. (10 marks)
2.                  
   1. Explain five factors that may lead to dissolution of a co-operative society. (10 marks)
   2. Explain five features of underdeveloped countries. (10 marks)
3.              
   1. The following balances were extracted from the books of Mtito Andei Wholesalers on 1st October 2021:
      

      Details	Ksh
      Bank	80,000
      Cash	15,000
      Juma (creditor)	24,000
      ICDC loan	70,000
      Motor vehicle	210,000
      Stock	45,000
      Mangu (debtor)	26,000
      Capital	237,000

      The following transactions took place in the first week of the month:
      October 2nd Withdrew Ksh 14,000 from the bank to pay Juma.
      October 3rd Mangu paid his debt of Ksh 10,000 cash.
      October 4th Took a loan from bank worth Ksh 170,000 cash of which Ksh 70,000 was used to clear outstanding ICDC loan.
      October 5th Purchased goods worth Ksh 40,000 in cash.
      Required
      1. Record the above transactions into their relevant ledger accounts and balance them off. (8 marks)
      2. Extract a trial balance as at 5th October 2021. (4 marks)
   2. Explain four elements of a good transport system. (8 marks).
4.                  
   1. Explain five ways in which employees may contribute to the success of a business. (10 marks)
   2. Explain five roles of the World Bank in promoting international trade. (10 marks)
5.                
   1. Explain five limitations of mobile phones in communication. (10 marks)
   2. Use the diagram given below to answer the questions that follow.
      
      
      1. Explain four effects of the shift in demand curve from D, to D. (8 marks)
      2. State what is represented by the shaded area. (2 marks)
6.                            
   1. The following Trial Balance was extracted from the ledgers of Ushindi Traders on November 2021.
      

      Ushindi Traders Trial Balance as at 30th November 2021
      Details	Dr	Cr
      	Ksh	Ksh
      Capital		58,300
      Sales		200,000
      Purchases	111,000
      Salaries	13,300
      Rent Income		40,000
      Stock 1/12/2020	12,500
      Insurance	10,500
      Telephone	9,500
      Advertising	14,000
      Premises	100,000
      Furniture	16,000
      Debtors	33,500
      Creditors		53,000
      Cash in hand	18,400
      Cash at bank	12,600
      	351,300	351,300

      Stock on 30th November 2021 was valued at Ksh 8,500.
      Prepare the business Trading, Profit & Loss Account for the year ended 30th November and a Balance Sheet as at that date. (12 marks)
   2. Explain four reasons that may make Government departments adopt open office layout. (8 marks)