BUSINESS STUDIES Paper 2 Questions - KCSE 2022 Past Papers

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    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)
    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)
    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.
      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).
    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)
    1. Explain five limitations of mobile phones in communication. (10 marks)
    2. Use the diagram given below to answer the questions that follow.
      5 auygda
      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)
    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)


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