Business Studies Paper 2 Questions - Kassu Jet Joint Mock Exams 2023

Instructions to candidates

• This paper consists of SIX questions.
• Answer any FIVE questions,
• All questions carry equal marks.
• Candidates should answer all questions in English.

FOR OFFICIAL USE ONLY

QUESTIONS

1.            
   1. Explain Five importance of Business studies in the society. (10 marks)
   2. Explain Five causes of balance of payment disequilibrium. (10 marks)
2.                      
   1. Other than bidding, explain Five other methods of determining the price of a product in a market. (10 marks)
   2. Describe Five types of large scale retailers. (10 marks)
3.                  
   1. On 1st July 2021, Sisokhe Traders had Shs.36,500 at bank and cash in hand Shs. 250. During the month the following transactions took place.
      July 2 Cash sales Shs.42,630 paid directly to the bank.
      July 3 Received a cheque for Shs.14,100 from Fatuma in full settlement of a debt.
      July 7 Credit sales Shs. 15,500 to Muvasu
      July 8 Bought goods for Shs.26,240 on credit from Lytona Enterprises.
      July 12 Cash sales Shs.42,450.
      July 14 Paid Namuchu by cheque Shs.23,750 in full settlement of his account after deducting 5% cash discount.
      July 15 Paid wages Shs.24,000 in cash.
      July 16 Withdrew Shs.36,000 from the bank for office use.
      July 17 Cleared Lytona account of Shs. 26,240 in cash less 12.5% discount.
      July 18 Muvasu cleared her account of Shs 15,500 in cash less 8% discount.
      July 20 Cheque received from Fatuma was dishonored.
      July 28 Paid salaries by cheque Shs.48,600.
      July 30 All cash was banked except Shs.5,000.
      Required: Prepare a three column cash book. (10 marks)
   2. Briefly explain the procedure an insured would follow when making an insurance claim. (10 marks)
4.              
   1. Explain any Five Measures that the government can use to curb the unemployment rate in Kenya. (10marks)
   2. Explain Five differences between a partnership and private Limited company forms of business units. (10marks)
5.                
   1. Explain Five uses of National Income Statistics to a country. (10marks)
   2. Explain Five canons of a good tax system. (10marks)
6.                    
   1. The following balances were extracted from the books of Tik-tok investment on 31/12/2020.
      

      Item	Ksh
      Land	464,250
      Sales	330,000
      Opening Stock	35,000
      Purchases	300,000
      Commissions received	36,000
      Carriage outward	30,000
      Returns outwards	25,000
      Carriage inwards	15,000
      Returns inwards	10,000
      Closing Stock	69,000
      Debtors	65,500
      Bank	200,000
      Capital	783,250
      Creditors	105,500
      Cash	60,000

      Additional information,
      Margin stated at 20%
      Prepare
      1. Trading profit and loss account for the year ended 31st Dec 2020 (8marks)
      2. Balance sheet as at 31st Dec 2020 (4marks)
   2. Explain Four factors that may hinder development of a country. (8marks)