Business Studies Paper 2 Questions with No Answers - Maseno Mock Exams 2020/2021

INSTRUCTIONS TO CANDIDATES

• All questions carry equal marks
• Candidates should answer the questions in English

1. 
   
   1. Explain leakages and injections that affect flow of National Income in the economy. (12mks)
   2. Explain any four emerging issues in communication in Kenya today.(8mks)
2. 
   
   1. The following balances were extracted from the books of Hosea traders as at 24th June 2020
      Items            Balances
      Creditors         50,000
      Bank              140,000
      Cash               85,000
      Debtors           15,000
      The following transactions took place in the last week of June 2020
      25/06/2020 - Purchased stock of ksh.20,000 and paid ksh 12.000 cash and the rest to be paid later
      27/06/2020 - Sold stock worth kshs.10,000 on credit
      30/06/2020 - A debtor paid kshs.5,000 by a cheque
      
      Prepare Hosea’s ledger accounts balance them off and extract his trial balance as at 30/06/2020. (10mks)
   2. Explain five forms of Economic Integration (10mks)
3. 
   
   1. Explain five factors that hinder Economic Development in African Countries (10mks)
   2. Explain FIVE ways in which a business enterprise can practice a healthy production environment (10mks) 
4. 
   
   1. Explain five policies that the Government can adopt to promote entrepreneurship in the country. (5mks)
   2. The following information relates to Mawira retailers for the month of January 2020
      Invoice received
      Jan 6 Mandela ltd shs. 70,000
      Jan 12 Odhaiambo tenders shs.150,000
      Jan 18 Jua Kali enterprise shs. 50,000
      Invoice issued
      Jan 5 Jambini traders sh.10,000
      Jan 10 Fedha ltd sh.100,000
      Jan 15 Kalu works ltd sh 120,000
      Credit note issued
      Jan 5 Jambini traders sh.12,000
      Jan 13 Fadhili ltd sh.6,000
      Credit note received
      Jan 7 Mandela ltd sh.5,000
      Jan 14 Odhiambo traders sh.1,000
      Additional Information
      Jan 8 Sold machine on credit to Kwetu traders sh.50,000, the machine’s book value was kshs.70,000 two years earlier.
      Jan 9 Bought equipment on credit from lowland retailers sh.8,000
      
      Required :
      Record the above transactions in the appropriate daily books (10mks)
5. 
   
   1. Explain five differences between Joint Stock companies and Public Corporation forms of business units (10mks)
   2. 
      
      1. With aid of a diagram, show how equilibrium price and quantity are affected when supply increases followed by a proportionate increase in demand (6mks)
      2. Giving examples, explain the meaning of; (4mks)
         
         1. Derived Demand
         2. Composite demand
6. 
   
   1. Explain Five factors that a manager needs to consider when selecting office equipment (10mks)
   2. The following trial balance was extracted from the books of Enocka traders as at 31/12/2019
      

      Item	Dr.	Cr
      Opening stock	30,000
      Purchases/sales	275,000	390,000
      Debtors	47,000
      Commission		36,000
      Returns	10,000	6,000
      Carriage inwards	16,000
      Bad debts	3,000
      Wages	20,000
      Rates	12,000
      Buildings	450,000
      Furniture	180,000
      Bank overdraft		210,000
      Insurance	19,000
      Discounts	5,000	7,000
      Drawings	25,000
      Creditors		52,000
      Cash at bank	250,000
      Cash at hand	40,000
      Capital		689,000

      Additional information
      1. Closing stock shs.50,000
      2. Carriage outwards sh.8,000
         Required:
         
         1. Prepare Enocka traders trading, profit and loss account for the period ended 31/12/2019 (6mks)
         2. Balance sheet as at 31/12/2019 (4mks)