Instruction to candidates
- Write your name and stream in the space provided above.
- This paper consists of six questions
- Answer any five questions of your choice in the spaces provided.
- All questions carry equal marks
- Students should answer the questions in English only.
For examiner’s use only
Question |
Maximum Score |
Candidate’s Score |
1 |
20 |
|
2 |
20 |
|
3 |
20 |
|
4 |
20 |
|
5 |
20 |
|
6 |
20 |
|
Total |
|
QUESTIONS
-
- Explain five reasons why many people would prefer to start a partnership business. (10marks)
- Explain five disadvantages of departmental stores. (10marks)
-
- Explain five problems encountered at plan implementation stage. (10marks)
- Explain five advantages of government involvement in business. (10marks)
-
- Explain five characteristics of land as factor of production. (10marks)
- Explain five factors that may lead to a country to experience unfavorable terms of trade. (10marks)
-
- Give five differences between open office layout and enclosed office. (10marks)
- On 1 Jan 2020 Mulei traders had 180,000 cash in hand and a bank credit balance of sh. 57,500.
During the month the following transactions took place.
3rd cash sales sh.21, 800.
4th a debtor settled his account of sh.90, 000 by cheque.
10th paid salaries sh. 40,000 in cash.
12th took cash sh. 3,500 to settled a personal debt.
23rd received a cheque of sh.8, 460 from Nganda wholesalers after deducting 6% cash discount.
24th deposited sh. 10,000 in the bank from the office.
25th purchased stock worth sh. 8,950 on credit from Ngumo distributors.
26th cash sales banked directly sh. 38,000
29th settled creditors account sh. 6,000 by cheque less 3% cash discount.
31st banked all cash except sh. 40,000
Required: prepare Mulei traders 3 column cash book as at 31 Jan 2020 (10marks)
-
- Explain five disadvantages of newspapers advertising. (10marks)
- Explain five factors that influences the level of national income in a country. (10marks)
-
- Explain four benefits of intermediaries in the distribution channel (8marks)
- The information below relate to the trial balance of Songo traders as at 30 June 2017.
Songo traders
Trial balance as at 30 June 2017
Particulars
Dr shs.
Cr shs.
Stock on 30/6/2016 4,00 Capital 13,870 Purchases and sales 3,500 7,000 Drawings 6,00 Furniture and fittings 2,000 Motor vehicle 15,000 Debtors and creditors 8,00 1,200 Returns 150 2,00 Discounts 90 80 Rent 1,00 Insurance 210 Bank 300 TOTAL
22,750
22,750
Closing stock was valued at 500
Required:- Prepare Songo trading, profit and loss account for the year ended 30/6/2017.
- Balance sheet as at 30/6/2017 (12marks)
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