Business Studies Paper 2 Questions - Kapsabet Boys Post Mock 2023 Exams

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c) This paper consist of 6 questions
d) Answer ANY FIVE questions.



    1. Explain five cannons of effective government expenditure. (10marks)
    2. Uzima juice enterprises are considering marketing their imported goods direct to consumers. Outline five reasons that may be influencing them to make this decision. (10marks)
    1. Explain four features of direct production. (8marks)
    2. Record the following transactions in the books of original entry of Tumaini traders as at 15th June 2010 and post to the relevant ledger accounts and balance them off.
      • Bought an office printer for shs. 200,000 from Seals Stationary shop on credit.
      • Sales returns by Ouma traders worth 5,000 Credit note number cr.56 issued.
      • Sold goods on credit sh. 500,00 to Sargar Traders invoice no. 78
      • Sold goods shs. 900,000 cash to Mugo receipt no. 210 was issued
      •  Paid salaries sh. 50,000 by cheque no. 589 (12marks)
    1. Explain the procedure that is used in personal selling. (10marks)
    2. With the aid of suitable diagrams explain the difference between a movement and a shift in the
      demand curve. (10marks)
    1. Explain five limitations of a trial balance as a tool of locating bookkeeping errors (10marks)
    2. Explain five factors that could hasten economic development in Kenya (10marks)
    1. Explain five differences between a public warehouse and a private warehouse (10marks)
    2. The trial balance given below relates to Crown Enterprises

      ON 31ST DECEMBER 2011

                                                             Dr                      Cr
      Capital                                                                  900,000
      Buildings                                  450,000
      Debtors                                    536,000
      Creditors                                                               600,000
      Bank                                        200,000
      Cash                                        80,000
      Purchases                             1,000,000
      Sales                                                                  1,500,000
      Stock (1/1/2011)                     550,000
      Returns inwards                     20,000
      Carriage inwards                   8,500
      Discount allowed                   50,500
      Salaries and Wages              285,000
      Commission income                                            150,000
      Returns outwards                                                 30,000
                                                    3,180,000             3,180,000

      Stock on 31st December 2011 was valued at Sh. 350,000
      Required: Crown Enterprises Trading Profit and Loss account (10 marks)
    1. Explain SIX measures that the Government of Kenya may take to control her persistent Balance of payment deficit. (12 marks)
    2. Outline FOUR differences between endowment policy and whole life policy. (8 marks)
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