BUSI

NESSST
UDI
ES
CEKENAS
BUSINESSST UDIES
565/1
MARCH
BUSINESSST UDIESPAPER1
1.High
ligh
tfourwa ysinwh ic
hKe n y
ama ybenefitfr
omi tsnatura
l re
sou r
cese ndowme n
t. (4mks)
2.Outl
inefourwaysinwh ichcomme r
cesat
isf
iesh umanwa nts. (
4mk s
)
3.Thefol
lowingin
forma t
ionwa sextra
ctedf
romt h ebookso fSaraiTradersfortheyearended30thApril
2003.
Shs.
Sales 480,000
Stock(1.05.
13) 80,000
Stock(30.04.14) 120,000
Profi
tma rgi
nisc al
cul
ate
da t25%
Calcul
at
et hera
teo fst
ockt ur
n over
.
4.Outl
inefourci
rcums t
ancesun derwhic
hap rod ucerma ynotrequ i
realargewa reh
ou s
e (
4mks)
5.High
ligh
tfourmo neytransfe
rs erv
ice
so f
fe
redb ycomme rc
ialban ks. (
4mks)
6.High
ligh
tfourme asure
sta ke
nb yp r
oducer
st oe nsur
ec onsume r
sa reprotecte
dwh enu s
ingth e
irpr
o d
ucts (
4mks)
7.Outl
inefourci
rcums t
ancesthatall
owe xi
st
enc eo fmon op
oliesinac oun t
ry. (
4mks)
8.IntheabsenceofthePartners
h i
pDe ed,t
hep rovis
ionso f
thePa rtner
shipAc tofth
eL awso fKenyaappl
ies
.Outl
i
nefourst
at
edprov
isi
ons.
(
4mk s
)
9.T hedema n
dc urveforp e
rsonalc a
rs/v
ehic
lesinKe ny
ah asint her ecentti
me sshi
ftedtot heri
ght.Giv
efourposs
ibl
erea
sonsfo
rthis
.
(
4mks)
10.Thetabl
eb el
ows howsthes ourcedocumentsa ndtheircorre
spo ndi
n gb o
ok sofori
ginal
en tr
y.Iden
tif
ytheco
rrec
toneineachc
ase.

Sour
ceDocument Bo
oko
fOr
igi
nal
ent
ry
i
) I nc
omingin
voice
i
i) Outgo
ingre
ceipt
i
ii
)I nc
omingCredi
tNot
e
i
v) Outgo
ingCred
itNot
e
(4mk
s)
11.
Outl
inefourchara
cter
ist
ic
so fdi
re
ctprod
u ct
ion. (4mk
s)
12.
Indi
cat
eint h
et a
blebel
owt hemostappr
opria
teoff
icemachin
eo newouldusetohan
dleth
efol
l
owingsi
tua
ti
ons
. (
4mks)
Off
i
ceSituat
ion Mostap
propr
ia
temachi
ne
a)Ne e
dtop r
oducetwent
yc opi
esofexamsana l
ysi
sforame et
ingin
sessi
on
b)Cu t
ti
ngu nwant
edd o
cume n
ti n
tot inyp i
ecestoa v
oids uch
docume ntget
ti
ngintothewronghands
c)Forpri
n t
ingposta
geimp r
essi
onsonenvelop
es
d)Fortri
mmi ngdocumentsint
orequi
redshapesandsiz
es.
13.
Stat
efourf
a ct
orstha
taninsuran
cecompa nymayc ons
iderwhendete
rmini
ngthepre
miumstobechar
gedf
oranin
sur
anc
ecov
er.

(
4mks)
14.
Outl
inefo
urdrawbac
ksmetwh e
ncompari
ngst
andar
dsofl
i
vin
gi ndi
ff
ere
ntc
oun
tri
es. (4mks)
15.
Ide
nti
fyfourba
rri
er
stoeff
ect
iv
ecommunica
ti
on. (
4mk s
)
16.
Taxa
ti
o ni
sama i
nsourc
eo fp
ubli
cfi
nan
ce.Hig
hli
ghtf
ourf
act
orsth
atcomei
npl
aytodet
ermi
net
hea
mo u
ntofr
even
uecoll
ect
edbya
ny
co
untryusi
ngit
.
(
4mks

17.
Bel
owi
sav
ici
ousc
ir
cl
eofp
ove
rtyc
aus
edb
yaRAPI
DPOPUL
ATI
ONGROWT
H.F
il
li
nth
emi
ss
ings
pac
es (
4mk
s)

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|1
 BUSI
NESSST
UDI
ES

18.OnJ uly12016,Ema yang’

at r
adershasKs h.6,000c ashinh a
nd ;bankov
erd
raf
tofKsh.2,
000.Dur
ingt
hemont
h,thef
oll
owi
ng
t
rans
actionst
ookp la
ce.
Ju
ly4th: Recei
ve dachequef r
omd ebto
rstotal
ingtoKsh.80,000
Ju
ly16th: Pa idtel
ephoneb i
ll
sKs h
. 1,
200c ash
Ju
ly21st: WithdrewKshs16, 000fromb ankforoff
iceuse
.
Requ
ired:Ent
erthea bovein
formationinEma y
ang ’
aT r
ader’
sCashBo ok. (
4mk
s)
19.Outl
inefourfa
ctorsthatanentre
p r
eneurs houl
dc onsi
derbefor
esettl
ingupamanuf
act
uri
ngbus
ine
ss. (4mks)
20.Outl
inefourchal
lengesa s
soci
atedwithh ea
vytra
ffi
cjami nurba
na r
e as
. (
4mk
s)
21.Completethef
ollo
wi ngtabl
eb yindic
ati
ngthea c
co untt
ob edebi
teda n
dtheonet
ob ec
redi
te
d (4mks
)

T
ransa
cti
on Ac
cou
ntt
oDR Ac
cou
ntt
oCR
i) Boughtadel
iver
yvanoncr
edi
tfr
om
SuperMoto
rL t
d.
ii
)Wi th
d r
ewc ashfromthebankfor
busi
nessus
e
ii
i)Pai
dNy amu,acre
dit
ori
nca
sh
iv)Receiv
edalo a
nfromNBCBankb y
cheq
u e

22.Thefol
lowingbala
nceswe reext
ract
edfromt heb oo
k sofGra
raTr
ader
son30thJu
ne2015
Purchases 200,000
Op e
n i
ngstock 40,000
Closi
ngs t
ock 30,000
Sales 300,000
Salesret
urns 5,000
Calc
ulat
e:
i
) Co s
tofgoodsso l
d
i
i) Percent
ageofgrossprofi
tonn etsal
es (
4mks)
23.Onthetablegiv
en,indi
catetheappro
p r
iatety
p eofadver
ti
si
ngmethodus
ed. (
4mks)
Descr
ipt
ion Ty
pe
i
)T opromo t
eap ar
ticul
arbran
do fap roduct -
i
i)Top ers
uadeac ust
ome rt
ob uyap roduct -
i
ii
)Cr eati
ngawarenessaboutaprod uct -
i
v)T opromotethen a
meo facomp any -
24.Kei
thown edamo t
orveh i
cl
ev al
uedatSh .2,000,000.Hecompre
hensi
vel
yins
uredtheca
ratSh
.1,200,
000.Th
emo t
orv
ehi
clewa
s
i
nvol
vedina nacci
dentandd ecl
ar
edawr i
teoff.
Ca l
cul
ateth
eamountKei
thsh
ouldgetf
romth
eins
urer
. (
4mks)
25.Sta
tefournegati
veeff
ectsofunemployme nt
. (
4mks)

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|2
 BUSI
NESSST
UDI
ES
CEKENAS
BUSINESSST UDI ES
565/2
BUSINESSST UDI ESPAPER2
1.a)Descr
ibef i
ver o l
eso fano f
fi
cea sac entreo fco mmu nicatio
n . (
10mk
s)
b)Dis
cussf i
vewa yso fdeal
ingwi thpub l
icd ebt. (10mk
s)
2.a)Disc
ussf i
veb u si
ne s
sc onsiderat
ionsma d ebya ne nt
repreneu rwheneval
uati
ngab usin
essopport
unit
y (10mk
s)
b)Expl
ainfiveca u s
eso fbalanceo fpayme ntde f
icitinac oun t
ry. (
10mk
s)
3.a)Descr
ibef i
vec ircums t
ancesinwh i
chh u ma np orter
agei sapp ropr
iat
easame ansoftra
nsport
. (
10mk
s)
b)Usethefo l
lowi ngtransacti
onst oprepa r
ea2c olumnc ashbo ok.
Jan.
1: Start
edb usinesswith50, 000c a sh
Jan3: Transf
e r
red30,000c ashtob an k
Jan4: Bou ghtgoodswo r
th20, 000b yc heque
Jan6: Receivedc a
sh40, 000f romd ebtors
Jan7: Soldstockwo rth10,000r eceivi
n gp ayme ntbu ycheque (
10mk
s)
4.a)Thefol
lowin gb alancesrelat
et oMo toEn terprisesasa t31De cember2016
Landa n db uildi
n g 1,500, 000
Stock( 1.1.16) 60,000
Pu r
c hases 740, 000
Stock( 31. 12.16) 54,000
Re t
u r
ni nwa rds 15,000
Re t
u r
no u twards 18,000
Disco untr ecei
ve d 10, 000
Re ntandr at
es 20,000
Ad vert
isi
n g 42,000
Sales 1,700,000
Wa tera ndl i
gh t
ing 28, 000
Salaries 56,000
Co mmi ssionsp aid 13, 000
Ca r
riagei nwa rds 60,000
Requi
red:Mo toEn terp
risesTradingandp r
o f
itan dle s
sa ccountf o
rtheyearended31stDecember2016.
b)i
)Us i
ngawe l
l l
a beledd i
agrami l
lust
ratep ri
cea ndo u t
p utdeterminat
ioninanoli
gopo l
yma r
ketst
ruct
ure. (
8mk
s)
i
i)Accountforp ricerigid
it
yi nthisma rketstructure (
2mk
s)
5.a)Expl
ai
nf ivere asonsf o
rr a
isi
ngf i
n a
n cesth r
o ughs aleo fordi
n ar
ysh a
resin
stea
do fdebent
ures (
10mk
s)
b)Highl
ightfived if
ferencesbetwe enCe ntralBan ka ndCo mme rci
alBanks (
10mk
s)
6.a)Disc
ussf i
vep ro bl
emswh ichac ountryc anfac ewh eni mp l
eme nt
ingad e
velo
pme ntpl
an. (
10mks)
b)Expl
ainfivecirc umstancesinwh icha nins urerma yr e
fu s
et oinsureanappl
icant
. (
10mks)

KIRINYAGA
BUSINESSST UDIES
PAPERONE565/ 1
AnswerAllQu est
ionsInT heSp ace
sProvided
1.Stat
efouru sesofinvoi
c etoas e
ll
erofg oods (
4mk
s)
2.Inwh i
chfou rwaysa r
ec onsumersli
kelytosuffe
rinas it
uationwherethe
reisnowareho
using (
4mk
s)
3.Highl
ightfourwa ysinwh ichafir
mc animp r
o v
eth epr
o ducti
vit
yofit
sh u
ma nres
ourc
es (
4mks)
4.Givefo
urr easonswh yama nuf
act
uringfir
mwo ul
db elocat
e dinanareawit
hg oo
droadnetwork (
4mks)
5.Thefol
lowingr e
latestoKibo k
oT r
adersfortheyearended31stDe c2012
Gr ossprofi
t.
...
..
...
..
..
...
..
..
..
..
..
..
..
...
..
.. sh.28000
Op eningstock...
...
..
...
..
..
..
..
..
..
..
..
...
..
..
.. shs
. 9000
Clo s
ingstock .
..
..
..
..
..
..
..
..
..
...
..
..
..
...
..
.. Sh s.6000
Gr ossprofi
tma rgin..
..
..
..
..
..
..
..
...
...
..
..
.. 25%
Prepa r
eKibo koTradersTrad
ingAc countforth
ey earen d
ed31stDec2012 (
4mks)
6.Indi
cat
ei nthespac eprovidewhethe
rth efol
lowingfact
orswi l
linc
reas
eo rdec
reas
etheinc
o meinc
ir
cul
arf
l
owo
fin
come
(
4mk
s)
Factor
s
(a)Sa vi
ngs
(b)Go vernme ntExpendi
ture
(c)T axe
s
(d)I nve
stme nt

7.
Thet
ablebel
owil
l
ust
rat
est
hed
ema
ndandsup
plyo
fac
ommo
dit
y (
4mk
s)
Pri
cesh Qua
ntit
y Qu
ant
it
y
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|3
 BUSI
NESSST
UDI
ES
De
man
ded Su
ppl
i
ed

Sh25 80 40
30 70 50
35 60 60
40 50 70
45 40 80

Fro
mt hetablestat
e
(
a) T h enatur
eo fthed ema ndofthec ommo dit
y (1mk.
)
(
b) T h enatur
eo fthes upplyoftheco mmo dit
y (1mk)
(
c)Equil
ibriumpric
e (1mk)
(
d)Eq ui
li
b r
iumq uanti
ty (1mk)
8.Highl
ightfourwaysinwh i
chc on s
ume r
sma yprote
ctthemselve
saga i
nstexpl
oi
tat
ionbytr
a de
rs (
4mks)
9.Outl
inefourfeatur
esofap r
ivateLimit
edCo mp any (
4mks)
10.Stat
efoura dvant
ageo fsen d
ingp ar
celsbyc ouri
erfi
rms (
4mks)
11.Jamesintendstoopenab a n
kc urr
enta ccount.Hi
ghli
ghttoh i
mf ourme r
it
sofopera
ti
ngab ankcurr
entacc
ount (4mks)
12.Highl
ightfourbenef
itso f“Poolin
go fris
ks”toa ninsur
an c
ec ompany (
4mks)
13.Outl
inefourreasonswh yc oun t
ri
esma ytradewi t
heacho th
er (
4mks)
14.Stat
efourre a
sonswh yf i
na nci
alins
ti
tutionsma yreq
u i
reab al
ancesheetfr
omat ra
derwh oint
endst
ob or
rowmoneyt
oex p
andhis
b
u s
iness (
4mks)
15.Outl
inefourc ha
ract
eristi
cso fane f
fi
cienttaxsyst
em (
4mks)
16.Stat
ethee f
fectofeacho fthefoll
owingt ransac
tio
nso nthebalan
c esheett
otal
sbywrit
ingincr
ease,dec
reas
eornoef
fe
ctineachcas
e
(
4mks)
Tr
ansaction Ef
fect
(a)Pu rchas
eds tockinc ash
(b)Pa i
dc r
edi
torsinc ash
(c)Wi th
d r
ewc ashfo rpersona
lu se
(d)Bo ughtmach i
n er
yo nc r
edit
17.Highl
ightfourbenef
itso fusingelect
ronicfil
ingsyst
em (4mks)
18.Outl
inefours t
rat
egi
e sthatas mallsc
a l
efirmc oul
da doptt
oe xpa
n dsoastoenjoyeconomiesofs
cal
e (4mks)
19.Stat
efourb enef
it
sthatc ouldaccruetoac u s
tomerwh ob uy
sg oodsfr
o mad e
part
me nt
alsto
re (
4mks)
20.Outl
inefoura dv
antageso fadvert
isi
ngt othec ons
ume r
. (4mks)
21.Outl
inefourreasonswh yi tma ke
sitdiff
icul
ttos a
ti
sfyallhumanwa nt
s (
4mks)
22.Id
e n
tif
yfo urrea
sonsf orma i
n t
aini
ngb ookso rori
ginale
n t
ry (
4mks)

23.
Mav
okoTra
der
shadt
hefol
lo
wingtra
n s
acti
onsforthemon t
hofFebru
ary2014
Feb22014–Boug
htgoodscosti
ngsh .
600,000fro
mMwi ki
Trader
soncre
d i
t
Feb242014–Boug
htgoodsfor700,000fromMwi kit
rad
ersoncredi
t
Feb25–Pai
dMwikit
rade
rsh.350,000b ychequ
ea spar
tpaymentf
orgoodsre
cei
ved
Recor
dthea
bov
etra
nsact
ion
sinthea ccoun
tbelowandb a
lanc
eitoff
.
Dr MAVOKOT RADERSA/ C CR

Da
te Pa
rti
cul
ar Amo
untDa
te Pa
rti
cul
ar
s Amo
unt

24.
Thefo
ll
owin
gisanext
rac
tofaca
shb
ookf
romRov
iot
rad
ers (
4mk
s)
Dr Cr
Dat
e Det
ai
ls Cash Ban
k Date De
tai
l
s Ca
sh Ba
nk

Ja
n1 Ba
lb/f 12500 J
an1 Ba
lb/f 5500
5 Sa
les 7200 8 Wage
s 2400
10 Ca
sh 1500 10 Bank 1500

a
).Gi
vet
hen
ameo
ftr
ans
act
io
non
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|4
 BUSI
NESSST
UDI
ES
(
i)Jan1 2006o ncre
d i
tsi
de
(
ii
)Jan102006
(
ii
i)
De t
ermi
nethebal
ancesc
arr
iedd
ownonJ
an31st2006
25.
Sta
tef
o u
rd i
f
fere
nce
sb e
tweenamo n
opol
yan
dper
fec
tcompeti
ti
onmark
ets
tr
uct
ure (
4mk
s)
Mo nopol
y Per
fec
tCompe
ti
ti
on

(
a) (
a)
(
b) (
b)
(
c) (
c)
(
d) (
d)

KIRINYAGA
BUSI NESSST UDIES
PAPERT WO565/ 2
An swera nyfi
v equest
ion s
1a )Di scussfiveecon omicimp or t
an ceo fn at
uralreso urc
es (
10mk s
)
b)Ot herthant heinst
rume n t
su se db yCe nt
ralBa nktoc ontrolcr
ed i
tc re
a t
ion,e x
plai
no therfiveme thodst
hatar
eus edtocontr
ol
i
nflat
ion (
10mk s
)
2.a)De s
crib
ef i
ved ocume ntstha tareu sedi ninternationalt
rad e. (
10mk s
)
b)T h etabl
eb elows howst hea ged i
stributi
ono f ac o
u nt
ry
Ag einy ears %o fpopu l
ati
o n
0-15 45
16-55 31
56a nda bove 24
Explai
nf i
ven egati
vee conomi cimp licati
o nso ft
h i
sa ged is
tri
bu t
iontoac ountry (
10mk s
)
3.a)Ex plai
nfivewa ysinwh icht hei nsuran ceindus t
ryc ont
ributestot h
ed e v
e l
opme ntofKen ya’secon omy (
10mk s
)
b)T hefoll
owi ngtransact
ion sre l
atet oPu mu aWh olesal
ersforthemo ntho fMa rch2011
Ma rch1:Bo ughtgood so nc reditfromKa wed istr
ibut
o rsshs.26,200, Kama kiaShs.15600, Ma mboSh s
.33,
360
Ma rch2:So ldg o
o d
so nc redittoF umar etail
e r
sSh s.37, 200, Titog r
o cersSh s
.25,500a ndWa mbatr
ader
ssh s.16,
250
Ma rch6:Re tu r
nedg ood stoKa ma kiashs.2,400a ndMa mboSh s
. 4,160
Ma rch9:So ldg oodso nc redittoT a muSh s. 5,500a ndPa tuSh s.18,200
Ma rch11:Bo ughtgo odso nc red i
tfo rmCh u maSh s
.33, 840
Ma rch15:Go odsreturne db yT amuSh s
.1,500a ndF umar eta
ilersSh s.1,820a ndPatuSh s.2,600
Ma rch18:Bo ughtgo odso nc red i
tfro mJ amaSh s.21,210a ndSa n aSh s.53,850
Ma rch26:Cr edi
tsal
e stoKa ma njaSh s
.16,600, Oreng oSh s.19,260a n dWa mat raders15,200
Required
Enterthea bovetransacti
oni nth ere spectiveboo kso fori
ginale nt
ry (
10mk s
)
4.(
a)Ex pl
ainfi
vef acto
rsthatat rad erma yc o nsi
derwh end e
termi n
ingt heap propri
atechannel f
o rdist
ribut
iongood
s (10mks)
b)Ke nyaisint hep r
ocesso fd evelopingas t
an dardg augerailwaylinefromMo mba s
atoMa laba,Explai
nfiv
ebenef
itsofthe ne
w
ra
ilwayl i
ne (
10mk s
)
5.(
a)Ex pl
ainthefivefactor
st hata ne ntrepre ne
urwo uldconsiderwh ene valuati
ngab usi
nessid ea. (
10mk s
)
(b )
Th eecono myo fac er
tainc ou ntr
yi nt hecon t
inen thasb eeng r
owi nga tav erylowrate.Explainfivepossi
bl
erea
so nsthat
couldh aveledtoth i
strend. (
10mk s
)
6(a)Exp l
ainfouri nter
nalfactorst hatma ye ncouraget heachievemen tofb usi
ne ssgoals (
8mk s)
(
b )Th efol
lowingi nf
o r
mationwa se xtractedfromt h ebo ok
so f Ramo giTradersa sat31stDece mb er2012
Kshs
Sales 800, 000
Purchases 500, 000
Returninwa rds 90,000
Returno ut
wa rds 26,000
Credi
tors 150, 000
Rent 60,000
Deliv
eryv an 160, 000
Carri
ageo utwards 3,000
Deb t
ors 120, 000
Carri
agei nwards 40,000
Cash 60,000
Stock(June2012) 100, 000
Int
erestexpe ns
es 10,000
Gen e
ralexpe nse
s 7,000
fo
rma rki
ngs cheme sinboxMRCHEPKWONYo no 724251706 Page|5
 BUSI
NESSST
UDI
ES
s
t
St
ock(31 Dec2012) 120,
000
Ba
nkover
draf
t 4,
000
Ca
pit
al 170,
000

Requ
ire
d
(i
)Pr
epareaT
radi
ng,Pro
fita
ndlossac
countf
ort
heyea
ren
ded31stDe
cemb
er2012 (
8mk
s)
s
t
(i
i
)Prepa
reabal
ances
heetasat31 Dece
mb e
r2012 (
4mk
s)

IGEMBE
565/1
BUSINESSSTUDIES
PAPER1
TIME:2HRS
1. 
Ide
nti
fyf
ourtype
sofbusi
nessacti
vi
ti
esanentr
epreneu
rma yin
ves
tin. (
4ma
rks
)
 
2. St
at
efourf
acto
rstocons
iderbef
oreatr
aderoff
ersacred
ittoacu
stomer
. (
4ma
rks
)
 
3. Hi
ghl
igh
tfourre
ason
swh yma nybusi
nes
sa r
eado p
ti
ngano penof
fi
cel
ayou
t. (
4ma
rks
)
 
4. Gi
veanexa
mp l
eforea
cho fth
efoll
owing
: (
4ma
rks
)

 
5.
 Highl
ig
h tfou rfact
orsthatma ys l
owd o wntheg rowthofEntrepr
eneur
shipi
nKe nya
. (4mark
s)
6.Thr
eep art
n erswo ul
dl i
ketoe n
gageinap art
nershi
pformo fbu s
ine
sswit
h o
utawr i
tt
enp a
rtne
rshipagr
eement
. Hi
ghli
ghthow the
Par
tne
rsh ipAc twil
lg u
idet hemr egardi
n g
: (
4ma r
ks)
a. P r
ofita ndlosssharing
b. Sa laryt op art
ners
c. L o
a nsg iventotheb usinessbyap ar
tner
d. Ad mis si
o nofan ewp artner
7.Expl
ai
nb rieflythefol
lowingt rendsinformso fbusines
su ni
ts. (
4ma r
ks)
a. F r
an chising
b. Gl ob ali
za t
ion
c. Ca r
te l
s
d. Ch ecko ffsyste
m
8.Highl
ig
h tfou rreaso
n swh yCo nsume rAssociat
ionsma ynotbee f
fe
cti
veinthe
irconsumerp rote
cti
oneff
ort
s. ( 4ma r
ks)
9.Menti
onf ou rcirc
ums ta
n cesu nde
rwh i
chap roducerwillf
i
n ditnec
essar
ytotran
sportgoodsb yatra
in. (4mark
s)
10. 
Outl
inefo urro l
esplay
e db ywa r
ehou sesintra
de. (
4ma r
ks)
11. 
Li
stfoure rrorstha
tma yma keatri
a lbala
n c
en ottobalan
ce . (
4ma r
ks)
12. 
Highl
ightfo urfunct
ionso fa d
verti
si
n ga g
e n
ciestoana dv
erti
ser. (4mark
s)
13. 
Highl
ightfo urcontemp or
a rytr
endsi ncommu n i
cati
oninKe nyatod
ay. (4mark
s)
14. 
Sta
tefou rreasonsthatma yp rompta ninvest
ortolo c
atehisfi
rmn ea
rthemarketf
orh i
sproduct
s. (
4ma r
ks)
15.Highl
ightth reebenefi
tsofb usin
e s
st hatusessocia
lme di
ap l
atf
ormsinpromoti
ngit
sp r
oductsisli
kel
ytohaveoveri
tscompe
ti
to
rs.
(
3ma rks)
16. 
Thetableb elowshowst hea ged i
str
ibu t
ionofag iv
enc ount
ry.

Sta
tea
nyf
ournega
ti
veeco
nomicimp l
ica
ti
onsof t
hi
sagedis
tr
ibu
ti
ont
oac
oun
try
. (
4ma
rks
)
17.
 
Out
li
nean
yfo
urfea
tur
esofol
i
gopol
yma rket
. (
4ma
rke
t)
18.
 
Bel
owist
heb
ala
nceshee
tofWil
l
yT r
adersasat31stDec2019.
Wil
lyT ra
ders
’
Bal
anc eshee
t
At31stDec2017

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|6
 BUSI
NESSST
UDI
ES

Calc
u l
ate:
i
.Cu rr
e ntrat
ion (
2ma
rks
)
i
i.Returno nca pi
ta
l. (
2ma
rks
)
19.
Thefoll
owi ngstat
e mentsrel
atetotermsu sedinthest
udyofnati
onali
ncomeforanyco
untr
y.
Id
e n
tifythemo s
tapp r
opri
atetermf orthem. (
4ma
rks
)
a.
T hetotalmo net
aryv a
lueo fc
o mmo dit
iesprodu
cedinayear
.
b.
Inco mea t
tri
b ut
edt oonep er
so nperyearinacountr
y.
c.
F a
c t
o r
sthatleadtoa nincreaseintheincomea n
de x
pendi
tur
einthecir
cula
rfl
owofinc
ome.
d.
Ca pit
al c
onsu mpti
o nduri
n gproductio
n .
20.
Sta
tefourr easonswh yinfl
at
ionma yb ed es
irabl
einacountr
y. (
4ma
rks
)
21.
Journal
izethefoll
o wi
n gtran
sac t
io
n srel
a t
ingtoKipi
ngoTrad
ersf
ortheyear2011. (
5ma
rks
)
Jan5. CashPu r
chasessh .8920r ec
eiptno
.517
Jan12. Pai
dJ umaSh s.9800b ychequeaft
erhav
ingbeenal
lowedacashdi
scou
ntof2%
recei
p tno.0951
Jan17 BankedSh s.6000f romthec a
shtil
l
Jan19 Pai
df orre
p a
irsinc as
hSh s.14000,re
cei
ptno.0251.
Cashp aymentsjourn a
l

22.
 
Oth
erth
anser
vin
ga samediu
mo fexc
hange,men
ti
onfourotherf
unct
io
nso
fmo
ney
. (
4ma
rks
)
23.
 
Out
li
nefou
rdut
iesofCommerci
ala
tta
ches. (
4ma
rks
)
24.
 
Out
li
nefou
rle
dgeraccou
ntsuse
dforrec
ordi
ngmovemento
fs t
ock
. (
4ma
rks
)
25.
 
Out
li
nefou
rdi
ff
eren
c e
sbetwee
nh i
repur
chasea
ndinst
al
lmentbuy
ing
. (
4ma
rks
)

 
IGEMBE
565/2
BUSINESSST UDIES
PAPER2
TI
ME:2HRS
 
1.a .I nspit
eo fthebenefi
tsoflargescal
eo perat
ions,smallscalefir
msc onti
nu etoexist
.Expl
ai
nt hefac
torsthatj
ust
if
ythe
e
xis
tenceofsuchs mallfi
rms. (10ma r
ks)
b
. Us ingad iag
ram, expl
ainthee f
fe
c t
sof i
ncreaseindema ndforac ommo di
tyo nma rk
etequi
li
briumwh enitssupp
ly
remainsconstant
. (
10ma r
ks)
2. a. Ex pla
infivefact
orsthatde t
erminethep r
emiumst ob ec harg
e dinp roper
tyinsurance. (
10ma r
ks)
b
. Ex pla
infivepri
nciple
sth atguid
et h
et axsyst
emi nac ou ntr
y. (10ma r
ks)
3. a. Hi ghl
ightfourwa ysthr
o ughwh i
chag over
nme ntcanp rovideane nab l
i
n gen v
ir
o nmentfo
rthes uc
cessofb us
ine
ss
acti
vi
ti
esi nac ountry
. (
8ma r
ks)
b
. Onf i
rs
tMa r
ch20-6, Na j
ibhadc a
shi nhandKs hs.7800a ndab ankoverdraf
to fKshs
.23,400.Duringthemo nt
h,the
f
ol
lowingtr
a n
s ac
tionstookp l
ace;
Ma r
c h3 : Ca shsal
esSh s.6500p aidd i
recti
nt otheb ank
Ma r
c h4 : Bo ughtgo o
dsfo rSh s.15,000a ndp ai
db ycheque.
Ma r
c h6 : Ca shsal
esSh s.50,000
Ma r
c h9 : Re cei
vedac hequef orshs. 18000f romAmo l
oinful
lsett
lementofhisdebt
s.
Ma r
c h13 : Pa i
dinsurancep remiumss h s.
16,000i nc ash.
Ma r
c h14 : Pa i
dKa mo t
hob yc heques h.9,700i nfull
s et
tl
ementofhisaccountl
e s
s
3%c ashd i
scount
Ma r
c h17 : Ca shsal
e sShs.150, 000p a i
dd i
rectintob ank
.
Ma r
c h21 : Wi t
hdrewSh s.30,000f romb ankforo f
fi
ceu se
.
Ma r
c h23 : Re cei
vedac hequ eofsh .23,750f r
o mRo ti
chinfull
sett
lementofh i
saccountl
ess5%
cashd i
scount.
Ma r
c h25 : Pa i
dwa gesofsh .20,000i nc ash.
Ma r
c h26 : Ch e q
uer ece
ivedf r
o mAmo lowa sdishonou r
ed.
Ma r
c h30 : Ba n k
eda ll
cashe xceptsh .30,000.

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|7
 BUSI
NESSST
UDI
ES
REQUIRED:Preparead ul
ybala
n ce
dthreecol
umnc a
shb ook. (12ma r
ks)
4.
a.Expla
infi
vebene
fi
tsthatKenyawo ul
dgetift
heGo vernmentencouragesloc
ati
ono fabus
ine
ssinrur
alar
eas.( 10ma r
ks)
b.De s
pit
etheanno
u nce
me ntbytheGo v
ernmentt
h atth
ec ount
ryh asachi
eved6%e conomi
cgrowth,
thi
shasn otbee
n
t
ransl
at
edtoeconomicdevel
opme nt
.Discus
sfi
vei ndi
cat
orsof underd e
vel
opmen tcu
rre
ntl
yexpe
rie
ncedinKe n
ya.
(10ma r
ks)
5.
a.De s
cri
befi
veci
rcumstancesunderwhic
hama nu f
actur
erwo ul
df i
nditnecess
arytosel
lhi
sproduc
tsdi
rect
lytothecons
u me
r.
(
10marks)
b.Expla
infi
vebene
fi
tsoffil
ingoff
i
ced ocument
stoa norgani
zat
io n
. (10mark
s)
6.
a.Highl
ightan
yfourdis
ti
n gui
shi
ngc har
acte
ri
sti
csbe t
weenap ubli
climit
edc o
mp an
ya ndapubl
iccor
pora
ti
on . (8mar
ks)
b.Thefol
l
owingtr
ia
l b
a l
ancewasextrac
tedfr
omt heb o
okso f
Bu ma l
aTradersonDec2017.
BumalaT r
aders
Tri
alBalance
Asat31st/
De c/
2011

Addi
ti
onalinf
o r
ma ti
on.
i
.Stoc
ka sat31stDec,2011wa ssh.52,
000
i
i.Re
ntaccrueds h.
60,000.
i
ii
.In
surancepaidinad v
a n
cesh.4000
i
v.Commi s
sio
nd uesh.5000.
v.
Sala
rie
so wingSh .21,000.
 
Requi
red:
A.Prep
areat r
ad i
ng,profi
tan
dl o
ssa c
coun
tfo
rth
eye
are
ndd31stDe
e c,2011.
B.Bal
ancesheetasatthatdat
e. (
12mark
s)
 
WEST SCENTEXAMI NAT ION
565/1
BUSINESSST UDIES
PAPER1
TI
ME:2HOURS
1. Ou tl
inefourmeasuresthegovern
me ntofKenyashoul
dpu ti
np l
acet
op r
eventbr
ai
ndrai
n. (
4mk
s)
2. Asa ne xt
ernale
nvir
o nmentgiv
efo u rwaysonh o
we cono
mi cfac
tori
nfl
uence
stheoper
ati
ono
fab
usi
nes
s. (
4mk
s)
3. Ou tl
inefourfa
ctor
stob ec o
nsider
e dino rde
rtoconst
ruc
tac onsumerpr
icei
n d
ex. (
4mks
)
4. St at
efourbenef
it
so fusi
n gsoci
alme di
ainpromoti
ngapro du
ct. (
4mks
)
5. T hefol
lowinginf
orma t
io
nr el
atetoOd angaTr
ader
sfortheyearendd31stDe
e cembe
r2017.
Sale
s 2, 000,000
Curren
tAssets 5, 000,000
Fix
edAs s
ets 650, 000
NetProfi
t 300, 000
Curren
tLiabi
li
ti
es 650, 000
Clos
ingStock 100,000
OpeningStock 200,000
GrossProf
itmargi
nwa s 20%
Calc
u l
at
e:
i
) Cu rren
tRatio (
1mk
)
i
i) Gr ossProf
itmarkup (
1mk)

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|8
 BUSI
NESSST
UDI
ES
i
ii
) RateofstockTurno ver (
1mk)
i
v) Capita
lemp l
o y
ed (
1mk)
6. Outli
nec i
rcumstancesunderwh i
chatraderwoulduseport
e r
stotra
nsportg
oods. (
4mks
)
7. Stat
efourimp ort
anceo ff
inancialRat
io. (
4mks)
8. Highli
ghtfourreasonswh yinteres
tischar
g e
do nb o
rro
we dc a
pit
al
. (
4mks)
9. Outli
nefo u
ru s
eso faninvoicetoas el
le
ro fgoods. (
4mks)
10.Givefourreasonswh yKenyang ov
ernmentres
tri
ctsimport
s. (
4mks)
11.Thefoll
owingb al
anceswe reextract
edfromthebo oksofOn k
wanion31stDece
mb e
r2017.
Capi
talksh.240,000
Inv
estmentd u
ringthey earksh100,000
Monthlydrawingsk s
h.10, 000
Prof
itperyeark sh.76,000
Cal
cul
at
ei ni
ti
alcapi
tal. (
4mks
)
12.Givefourreasonwh ymo nopolyma ynotbep opul
artomo stecon
omiesinAfr
ic
a. (
4mks
)
13.Thefoll
owingill
u s
trat
ionwa stakenfromtheo p
erati
onsofK&Xme talwork
shop.Sta
tef
ourc
aus
eso
fth
esh
if
tin
dic
ate
d.
(
4mks)

 
14.St
atef
ourcau
sesofb
alan
ceofpay
me nts
urpl
us. (
4mks)
15.St
atef
ourwayinwhi
chthest
ockofabusi
nes
sma yc
hange
. (4mks)
16.Id
enti
f
yfourl
ongcha
insofdi
st
ri
but
ionnotpopu
lart
othebuy
ers
. (
4mks)
17.On1stMay2019,Davi
db o
ughtgoodsoncredi
tquot
edatKsh.200,
000.T
ermso
fsa
lewe
re20%t
rad
ed i
sco
untand10%c
ash
di
scountifpaymentwa sma deon28th /
5/2019.Ca lcul
at
ethea mountpa
idifpay
me ntwasma d
eo n27th/
5/2019. (
4mk s
18. Id
enti
fyfourfeatur
esoft h
ee conomicunio
na saformo fecon
o mici
ntegr
ati
on. (
4mk s
)
19. Af
terhisKCSEe x
aminati
on,Os or
owa sadvis
edtos t
artope
rat
ingatiedshoprat
herthanaunitshop.Givefo
urreas
onsforth
isadvi
ce.
(
4mk s
)
20. St
atefourcir
c umsta
ncesinwh ichthenatu
reo fgoodswouldinf
luenc
ethechoic
eo ft
rans
p o
rtme a
n s
. (4mks
)
21. Outl
inefourben e
fi
tsofmo neytrans
ferser
vic
eu si
ngamo b
il
ep hone. (4mks
)
22. Dif
fer
entiat
eb et
weenth efol
lowingter
ms:
i
) Ec onomicg r
owtha ndeconomicd ev
elopment. (2mks
)
i
i) E-ma il
an dE-comme rc
e. (2mks
)
23. Highl
i
g htfourcir
cumstancesunderwh i
chthema nagerofWang uTr
adermayp r
efe
rtotal
ktoh i
swo rk
ersver
ball
yins
tea
do fwri
ti
ngthemame
ssa
ge.
(
4mk s
)
24. Outl
inefourtypesofle
d ger
sthatab usi
nessdeal
ingwithgoodsisli
kel
ytoma i
nt
ain. (
4mk s
)
25.Yo uh a
veb eenappo i
nte
da sthepubli
crel
a t
io
n s
’off
ice
rinawe ll
-t
o-d
oc ompany.Discl
osefourdut
iesyouwil
lbeunder-
ta
king

WEST SCENTEXAMI NAT I

ON
565/2
BUSINESSST UDIES
Pape
r2
Ti
me:2½Ho urs
An swe rfi
vequest
ions
1.
a)Ex p l
ai
nf i
vefact
orsthatma yleadtob usi
ne ssme rgers. (
10mk
s)
b)Gi vefivedif
fe
rencesbetwe enab ondedwa r ehousean dafre
ewa r
ehouse. (
10mk
s)
2a)Th efol
lowingtra
nsacti
o nstookp l
aced uri
n gth emo nthofAp r
il2019inOt oyotr
aders
.
Ap ri
l
1st St
arte
db usinesswo rt
hKs h. 150,000d e
posit
edintotheban kAccount
.
2nd Boughtma chinewo rt
hKs h. 8,000a ndp ai
dbyc heque.
8th Recei
vedKs h.6,500f r
omKa riswh oo wedKsh7,000i nfullset
tl
ementofth
ea c
cou
n t
.
12th Wit
h dr
ewKs h.20,000o fwh ich15,000wa sforoff
iceusea ndth
er e
stwastopayf
orhiss
on’
s me
dic
alb
il
l.
15th Pai
dOc hiengT r
ade r
sa ccoun ti
nc asho fKsh.10,
000a ta10%c ashdi
scount
.
25th Heb oug
h tequ i
pme ntfor18,000a ndp ai
dbyc heque.
26th Hema dec ashsale
sp aiddir
e c t
lytotheb an
ka ccountworth15,000.
26th Madec r
ed i
tsalesamo unti
ngKs h.7,500.
27th Pai
dOk ong oac re
d i
torinca shKs h.3,200infullset
tl
emen tofhi
sa c
countofKs
h3,500.
30th Bankedallthemo neye xceptKs h.2,000.
Req ui
red
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|9
 BUSI
NESSST
UDI
ES
En t
erthea bo vetra
n sact
io
nsinrelevantcashb ooka ndb al
anceitof
f. (10mks)
b)Ex
plainfivead vant
a gesofM-Ba n
king. (10mks)
3a)Int h
er ecentp astthecountr
yo fRwa ndah asb eenv e
ryk e
eni njoi
ni
n gtheEastAfr
ic
aCommunit
y.Ex
pla
inf
i
v ebe
nef
it
st h
atRwan
da
ma yen j
oyb yb ei
n game mb erofEastAfri
c aCo mmu nit
y. (10mks)
b)Exp l
ai
nf i
vet ypeso funemploymentthatth egovernme ntofKenyama ybere q
uir
edtoadd
res
s. (10mks)
4a)Exp l
ai
nt hep rocedureforpersona
ls e
ll
in g
. (10mks)
b)Oma riTrade r
sh adt hefol
lo
winga s
s e
tsa ndlia
b i
li
tiesbalanc
eso n31stDecemb e
r2017.
Ca pi
tal 15,
100
Ba nk 6,000
De bt
ors 2,
000
PrepaidElec t
rici
ty 600
Ca sh 3,
000
Credit
o r
s 1,
500
Ou ts
tandings ala
ries 15,
000
Eq ui
pme nt 20,
000
Re qui
red
i
) Pr epareag e
n eralj
ournalt
orecordt hetra
n sact
ion. (8mks)
i
i) Po s
tth etransacti
onstotherel
e v
an tl
e dge
ra ccoun t
s. (10mks)
5a)somet axesa reimp oseddir
ectl
yont ax
p ayers’
income .Ex pl
ainfi
veofs u
cht ax
es. (10mks)
b)Exp l
ai
nf i
vel i
mi t
ati
o nsofatri
alBalance. (10mks)
6a)Exp l
ai
nf i
vewa ysbywh i
chane nt
repreneurc o
n tr
ibutestothep r
oducti
ono fgoodsa
ndser
vi
ces
. (10mks)
b)Thef ol
lowin ginfor
ma ti
onrelat
estoNy a r
o oTradersfortheyear2017.
Ne tSales ksh. 320, 000
Ma rgi
n 20%
Exp e
ns e
s 35,
000
Ra t
eo fsto
c ktu r
n o
v er 6T i
me s
Ca pi
tal ksh .180,000
Fromt hein f
o r
ma ti
o nabove,det
ermine.
i
) Gr ossPr ofit (2mks)
i
i) Co s
to fg oodss ol
d (2mks)
i
ii)NetPr ofi
t (2mks)
i
v)Av erageSt ock (2mks)
v) Ra teo freturno ncapit
al (2mks)

SUKELEMOCKPAPER1
565/1
BUSINESSSTUDIES
1.Highli
ghtf
ourwa y
sinwh i
chb us
inessst
udiesisusef
ult
oac ommunit
y. (4mar
ks)
2.Ou t
li
ne4e f
fe
ctsoffi
xi
ngpriceabovetheequil
ibri
um. (4mks
)
3.Ou t
li
ne4servi
cesoff
ere
dina genc
yb anki
nga satrendi
nthebanki
ngsect
or. (4mk
s)
4.Ou t
li
ne4funct
ionsofKenyaBu r
eauo f
Standards(KEBs)
. (4mks
)
5.Ama nu
fact
uri
ngfir
mh asbeenconsi
stent
lyrele
a s
ingtox
icwast
esin
tothenei
ghb
orho
od.Ou
tli
nef
ourmea
sure
sy o
ucant
aket
ostop
t
hefi
rmfromsuchma l
pract
ice
. (4mks
)
6.Thef
oll
owingter
msr e
lat
etoco mmun i
cat
ion:vert
ical
,hor
iz
ontal
,f
ormalan
di nf
orma
l.Wri
tet
heappr
opr
ia
tete
rm
ofcommu n
icat
ionass
ocia
tedwitheacho ft
hefo l
l
owingstat
ement
s. (4mks)

St
at
ement T
erms
(
a) Amana
gergi
vesi
nst
ruc
ti
onst
oas
upe
rvi
sori
nhe
rdi
vi
si
on

(
b) Ru
moursgo
ingaro
undth
att
hemostdi
sci
pl
in
edworke
rswi
l
lber
ewa
rde
d.
(
c) Aman
ageri
ssue
sag e
ner
alc
ir
cul
art
otheEmplo
yee
s

(
d) Pr
efe
ctsd
isc
uss
ingd
isc
ipl
i
nei
nth
eirs
cho
ol

7.
Duri
ngthemont
ho fJu
ly1995Kungumadesal
eswor
thKshs
.60,000.Hismarg
inonsal
eswas20%,cal
cul
at
e;
a)Thegr
ossprof
i
t
b )T
hecostofgo
odssol
d
8.
Sta
tewhet
herea
c hoft
hefol
lowi
ngtr
ansa
cti
onswi
ll
incr
eas
e,dec
reaseorhavenoef
fe
ctonthebal
anc
esheet
.(4mk
s)
Tr
ans
acti
on Ef
fecto
nBa l
anc
eTota
ls

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|10
 BUSI
NESSST
UDI
ES
Wit
hdr
ewmo ne
yfromthebankforo
ffi
ceus
e
Pai
dMr.Ki
meli
,acr
edit
orincas
h.
Pur
cha
sedamotorca
rbych e
que.
Sol
dapri
vat
ecaran
dd ep
osit
edthemoneyi
ntot
heb
usi
nes
s
ac
count

9.Hig
hli
ghtf
ourwa
ysinwhic
habusi
nesso
wnerc
anpos
it
iv
elyi
nfl
uen
cet
hei
nt
ern
ale
nvi
ron
men
tofh
is/h
erb
usi
nes
s.
(
4mks)
10.Out
li
nefo
urcha
rac
ter
is
ti
csofl
andasaf
act
oro
fpr
oduct
io
n . (
4mks)

11. St
at
ethed o
cumentus
e di
nh ometr
adeforthefol
l
owingfun
cti
ons. (
4mk
s)
Fun
cti
ons Do
cume
nt
Tofi
ndoutwheth
erthesuppl
i
erst
ockscert
aingoods
.
Tore
questasupp
li
ertoprov
idepar
ti
cul
argoo d
stoacusto
me r
.
Toi
nformthebuye
rthathi
saccou
nthasb e
enr e
duce
db ycer
tai
namou
nto
fmo
ney
.
Todesc
ri
beg o
odstha
th a
vebeensol
dtotheb uye
roncredi
t.

12.Mutu
kuwish
est
ojo
inas
avi
ngsa
ndc
red
itc
o-o
per
ati
ve(
Sac
co)
.Ou
tl
in
efo
urb
ene
fi
tsh
ewi
l
len
joyb
ybe
ingamemb
ero
fth
eco
-
op
erat
iv
e. (4mk
s)

13.Ou
tl
in
efo
urc
ir
cums
tan
cesu
nde
rwh
ichal
oca
lpr
odu
cerwo
uldb
uil
dhi
sownwa
reh
ous
e.

14.T
hef
ol
lo
win
gin
for
mat
io
nre
lat
est
oth
ebu
sin
esso
fKi
ta
mbawh
ole
sal
er
sfo
rth
eye
are
ndd31stDe
e cemb
er2017.

Keny
aSh i
l
li
ngs
Ca
p i
ta
lasat31stDecember2017 1,
040,000
Netpr
ofi
tfort
h eyear 240,
000
Ad
d i
ti
onal
investment 380,
000
Ca
p i
ta
lasat1stJan
uary2017 720,
000

Du
rin
gtheye
ar,
thepro
pri
et
ort
ooksomeg
ood
sfr
omt
heb
usi
nes
sfo
rfa
mil
yus
e.Ca
lcu
lat
eth
eva
lueo
fth
o s
egood
s .
(3mks
.)
15. St
at
e4reas
onswhyshe
lt
eri
sabasi
cwan
t. (4mks
)

16. T
hed
iag
ramb
elo
wre
pre
sen
tsv
ari
oust
ype
sof
tax
es.
Pro
por
ti
ona
lta
x,r
egr
ess
ivet
axa
ndp
rog
res
si
vet
ax.

I
. St
at
ewh
ati
sre
pre
sen
tedb
yth
eax
esl
abe
ll
ed‘
k’a
nd‘
m’. (
1mk
)
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|11
 BUSI
NESSST
UDI
ES
I
I. I
den
ti
fyt
het
axc
urv
esl
abe
ll
ed(
a)
,(b
)an
d(c
). (
3mk
s)

17.T
hef
ol
lo
win
gba
lan
cesr
el
at
etoMa
ter
een
ter
pri
sesf
ort
hey
eare
ndd30thSe
e pte
mbe
r2017.

k
sh.

Sa
les 145,
000

Pu
rch
ase
s 110,
000

p
re-
pai
din
sur
anc
e 30,
000

o
uts
tan
din
gsa
lar
ie
s 10,
600

d
ebt
ors 80,
000

c
ommi
ss
ionr
ece
ive
d 20,
400

b
add
ebt
swr
it
te
nof
f 24,
000

c
api
ta
l 68,
000

Pre
par
eMate
reent
erp
ris
estr
ia
lbala
nce. (
4mk
s)
18.FOURben
efi
tsKe
nyawouldde
riv
efrombei
ngame
mbe
rof
theEa
stAf
ri
cnaCo
mmu
nit
y(EAC)

19.T
heHig
hli
ghtF
OURme
asu
rest
hath
aveb
eenp
uti
npl
aceb
yth
eKe
nyag
ove
rnme
ntt
oen
sur
eth
esa
fet
yofpa
sse
nge
rso
nKe
nya
n
r
oad
s. (
4mks)

20.Ka
kamegaSu
garCo
mpa
nywo
uldl
i
ket
ose
lli
tsp
rod
uct
stoMe
xic
o.I
den
ti
fya
nyf
ourp
oss
ibl
ech
ann
elso
fdi
str
ibu
ti
ont
heb
usi
nes
s
mayus
e. (
4mks)

21.Ou
tl
in
eFOURme
asu
rest
hatc
anb
eta
kenb
yano
rga
niz
ati
ont
oen
sur
ese
cur
it
yofi
nf
orma
ti
ona
ndd
ocu
men
tsi
nth
eo f
fi
ce.
(
4mks
)

22.Ou
tl
in
eFOURf
eat
ure
sofp
erf
ectc
omp
eti
ti
onma
rke
tst
ruc
tur
e. (
4mk
s)

23.Highli
ghtcos
tofco
nsu
mergoodsandser
vi
cesf
orarepr
esent
at
ivebas
ketofa
naveragefami
lyi
sgi
venb
elo
w
YEAR 2006 2007
PRICES KSH.
1200 KSH.1600
Det
ermi
n ethei
ncrea
sei
ncons
umerpri
cein
dex.Usi
ng2006astheb as
eyear
. (
4mk
s)
24.Sta
te4r ea
sonswhi
chmayin
fl
uenceagover
nmentt
oimple
me ntapol
i
cyofdel
ocal
iza
tion. (
4mk
s)

25.I
nth
esp
ace
spr
ovi
ded
,st
at
eth
eso
urc
edo
cume
ntsu
sedt
ore
cor
din
for
mat
io
nint
hes
ubs
idi
ar
ybo
oksl
i
ste
dbe
low.

SUBSIDI
ARYBOOKS SOURCEDOCUMENT
S
Sal
esRet
urn
sDa yBook
Pur
chase
sDayBo o
k
Sal
esDayBook
Pur
chase
sRetu
rnsDayBoo
k

SUKELEMOCKEXAMS
TheKenyace
rti
fi
cateofse
condar
yeducat
ion
BUSINESSSTUDIES565/ 2
PAPERT WO
JULY2019
TIME:2HOURS30MI NUTES
1.(a
)Ex plai
nfi
vedi
ffer
encesbet
weenpri
vat
eli
mitedcompanyandpar
tner
shi
pfor
msofBus
ine
ssuni
ts
. (10marks
)
(
b).Expla
inanyfi
veme asur
est
hatth
eg ov
ernmentmaytaket
oreduc
etheamoun
tofmone
ycir
cul
at
ingi
nth
eec
on omy.
(
10ma
rks
)
2.(a)
. Expl
ai
nfivep
rinci
plesofi
nsu
rance
,high
lig
hti
ngthesign
if
ica
nceofeac
htot
hein
sur
ed. (10marks)
fo
rma rki
ngs c
hemesinboxMRCHEPKWONYo no724251706 Pa
ge|12
 BUSI
NESSST
UDI
ES
(b)
.Wi t
hthea idofawe l
lla
beleddiagra
m, expl
ainth ee f
fec
to fanincreaseint hes u
p pl
yhasonac ommodit
ywh i
lei
tsdemandr
emain
s
const
ant. (
10marks)
3.(
a).
Thefoll
o wingtra
n s
acti
onsrelat
etoMe gaWh ol
es al
ersforthemo n t
ho fMa rch
2011.
Ma r
ch1:Bo ughtgoodso ncredi
tfromKa wed is
tri
butorsSh s.26,200, Kamaki
aSh s.
15600,Ma mb oshs.
33360
Ma r
ch2: So ldg oodsonc r
editt
oF umar eta
iler
sShs .
37, 200, Ti
tog rocer
sShs.25,500andWa mbatr
a d
ers
Shs.
16,250.
Ma r
ch6: Re tur
n edgoodstoKa makiaSh s
.2,400a ndMa mb oSh s.4,160.
Ma r
ch9: So ldg oodsonc r
editt
oT amuSh s
.5,500a ndPa tuSh s.18,200.
Ma r
ch11:Bo u
gh tgoodsonc redi
tfr
o mCh umaSh s.33,840.
Ma r
ch15:Go odsret
u r
nedb yTamuSh s.1,500a ndF umar et
a il
ersSh s.
1,820an dPat
uSh s.
2,600
Ma r
ch18:Bo u
gh tgoodsonc redi
tfr
o mJ a
maSh s.
21, 210a ndSa maSh s.
53,850.
Ma r
ch26:Cr edi
ts al
estoKama njaSh s.
16, 600, Ore
n goSh s.
19, 260a ndWamat ra
des hs.15200
REQUIRED:En t
ertheabovet r
ansact
ionsinther especti
veb ooksofo ri
ginale nt
ry. (10ma r
ks)
(
b).De s
cribefiv
ewa ysacountryma yusetorestr
ictfo r
eigntrade
. (10mar
ks)
4.(a)
.Ex p
lai
nf i
veb e
ne f
it
sofpri
zewin ni
ngc ompeti
ti
o ni nproductpromo t
ion. (10mark
s)
(b)
.Ex pl
ainfivechal
lenge
sassociat
edwi t
ho ver
pop ulati
on. (10marks
)
5.(a
).
BUSSYT RADERS
TRIALBAL ANCE
ASAT30T HJ UNE2019
Detai
ls DR. CR.
KES. KES.
Purchases/
sal
e s 698000 1164000
Debtors/Cr
edit
ors 102000 124000
Stoc
k 80000
Motorv ehi
cl
es 1200000
Drawings 60000
Ret
u r
n s 44000 38000
Carr
iageinwards 20000
Bankloan 760000
Fur
n i
tureandfit
ti
ngs 1090000
Dis
co unts 50000 72000
Badd ebt
s 40000
Rentincome 48000
Int
erestonloan 96000
Cash 356,000
Capi
tal 1,630, 000
3836, 000 3836, 000

Clo
s i
ngstoc
kasat30/6/2019s h.160000
Pre
p a
re;t
radi
ngandprofi
tandlossaccountandtheb
ala
nceshee
ta sat30thJune2019. (12mar
ks)
(
b).Expl
ainanyfou
rreas
onsthataccountfort
heincre
asi
ngpopul
ar
it
yo fsel
fservi
cesyst
eminth
eexchang
eo fgoo
dsan ds
erv
ice
s.
(8mar
ks)
6. (
a).The
reh a
sb e
enatremendousincr
easeinesta
bli
shmentofi
ndu
str
iesinthec ou
ntie
sovert
hepas
tf i
veyears
.Expl
ai
n fi
ve
meas
urestha
ttheKenyagovernmenthasu s
edtoensuret
his
. (10mar
ks)
(
b).Explai
nfi
vereaso
nswh yah i
gherNa t
io
n a
lIncomemaynotnece
ssari
lyme anbett
erwel
fa
ref
ortheci
ti
zen
so ft
hat
count
ry. (10mar
ks)

EMBUNORT HSUB-COUNT Y
BUSINESSSTUDIESPAPER1
FORM4
TI
ME:2HRS
1.St
atewhe
thert
hefol
l
owingre
pre
sen
tin
jec
ti
oni
nt
oorl
eak
age
sfr
omt
hec
ir
cul
arf
l
owo
fin
come
. (
4mk
s)

Ite
m Inj
ect
io
n/l
eak
age
s
a
) Savi
ngs
b
) Taxes
c
) Go v
ernmente
xpend
it
ure
d
) Inves
tment
2.
Out
l
inefou
rma
croenvi
ron
me nt
alf
act
orso
fab
usi
nes
sth
atc
anl
eadtoi
tssu
cce
ss. (
4mk
s)

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|13
 BUSI
NESSST
UDI
ES
3.
Sta
tef
ourf
unc
ti
onso
fmo
ney
. (
4mk
s)

4.
Namet
hef
act
oro
fpr
odu
cti
ont
hate
acho
fth
efo
ll
owi
ngr
eso
urc
ere
lat
eto (
4mk
s)

Resourc
e F
act
orofpr
oduc
ti
on
a) Ma nage
r
b) Equipment
c) Farmer
d) River
5.
Lis
tfo
uress
ent
ia
lser
vic
espro
vid
edb
yth
eco
unt
ygo
ver
nme
ntst
othep
u b
li
c. (
4mk
s)

6.
Out
l
inef
ourf
act
orst
obec
ons
ide
redwh
enc
hoo
sin
game
anso
fre
pro
duc
ingd
ocu
men
tsi
nano
ffi
ce. (
4mk
s)

7.
Out
li
nef
oura
dva
nta
geso
faf
te
rsa
les
erv
ice
sasame
tho
dof
sal
esp
romo
ti
ont
oac
ust
ome
r. 4mk
s

8.
Out
l
inef
ourb
ene
fi
tso
fth
ene
wlyc
ons
tr
uct
eds
tan
dar
dgu
ager
ai
lwa
yli
ne. (
4mk
s)

9.
Int
hes
pac
esp
rov
ide
d,i
ndi
cat
eth
eac
cou
ntt
obed
ebi
te
dan
dtob
ecr
edi
te
dint
hef
ol
lo
win
gtr
ans
act
io
ns. (
4mk
s)

Tra
n sact
ion A/
CDEBI T
ED A/CCREDI
TED
a Bo u g
h tma chineincash
b St a
r t
edb usinesswit
hs h.
30,000i ncash
c T ooks h.20,000c as
hf r
omb usinessforper
sonalus
e
d Cr edi
ts alesofoldma chi
netoKa ma u
10.Thefol
l
owi ngb alanc
e swereext
ract
e dfromt h
eboo k
sofkumiku
mitr
ader
son31d e
c.2017.
Gros
sp r
o f
it ksh.
80, 000
Rent 8,000
Di
scountreceived 2,000
Sal
ari
es 10, 000
Di
scountall
o wed 5,000
Commissionre c
e i
ved 3,000
Maint
enancee xpense 9,000
Debt
ors 10, 000
Cr
e d
it
ors 12, 000
Requi
red:preparek u
mi kumi t
rad
ersp rofi
tandlos
sa c
countf
ort
heyea
rended31Dec2017. (
4mk
s)
11.
Hig
h l
ig
htfourc ir
c umstanc
esu nde
rwh i
c hgoodscanbedel
aye
dinabonde
dwa r
eho
use. (
4mk
s)

12.
Sta
tef
ourc
aus
eso
fco
st-
pus
hin
fl
at
io
n. (
4mk
s)

13.
Hig
hli
ghtf
ourf
act
orst
hatc
anc
aus
eaf
i
rmt
ode
vel
opi
nt
oamo
nop
oly
. (
4mk
s)

On3rdF
14. eb2016J
omobou
ghtgood
swo
rthks
h.12000.
Termso
fpaymentwer
e,t
rad
edis
count5%a
ndc
ashd
isc
oun
t10%i
f
p
aymenti
smadewi
thi
n30day
s.I
fJo
mopai
don26thFeb2016det
ermi
nethea
mounthepai
d. (
4mks)

15.
Int
hespa
cesp
rov
ide
dbe
lowi
ndi
cat
ewi
that
ic
kwh
eth
ere
acho
fth
efo
ll
owi
ngs
tat
eme
ntsr
el
at
est
opr
efe
ren
ceo
ror
din
ary
s
har
es. (
3mks
)

St
ate
ment Pr
efe
ren
ce Ord
ina
ry
a Re pr
ese
ntreal
own e
rsofacompa
ny
b Ra t
eofdiv
ide
ndisfi
xed.
c Ha svot
in
gright
s
d Re de
emable
e Ma ybecummu l
ati
ve
f Co ns
ide
redlas
tinli
qui
dat
io
n
16.Hi
ghl
i
ghtfo
urwaysinwhicht
hegover
nmen
tca
nus
etoi
nf
lu
enc
ethesup
plyo
fma
izei
nKe
nya
. (
4mk
s)

17.Hi
ghl
i
ghtf
ourp
urp
ose
sofp
ubl
i
cfi
nan
ce (
4mk
s)

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|14
 BUSI
NESSST
UDI
ES
18.St
at
eth
ety
peo
fin
sur
anc
epo
li
cyd
esc
ri
bedb
yth
efo
ll
owi
ngs
tat
eme
nts
. (
4mk
s)

St
at
eme n
t T
ypeofpo
li
cy
a
) Cov
erlos
sescause
db yemployee
s
dis
honest
y/fr
aud
b) Pr
ote
ctsemploy
eesagain
stinj
uri
eswhil
eat
work.
c
) Cov
erdamageonmo torveh
icl
e,oth
er
peopl
ea n
dp r
opert
yc a
usedbythevehi
cl
e.
d) Cov
ercla
imsbytheme mbersofpubl
ic
agai
nstabusi
ness
19.I
ndi
cat
ewh
ethe
reachofthefol
l
owingb u
s i
nes
stran
sact
io
nwi
lli
ncr
eas
e,de
cre
aseo
rnoe
ff
ecto
nba
lan
ces
hee
tto
tal
s.

Tr
ansac
tio
n Ef
fec
t
i
) Buyi
ngstockincas
h
i
i
) Buyi
ngstockoncredi
t
i
i
i) Wi t
hdrawi
ngc ashfr
omb ankf
orper
sonal
use
i
i
i) Re c
eiv
edc ashfr
omad eb
tor
20.Ou
tl
inef
ourprob
lemsKe nyawoul
dsuff
eri
fsh
ed oe
snotpar
tic
ipa
tei
nfo
rei
gnt
rad
e. 4mk
s

21.T
hef
ol
lo
win
gba
lan
ceswe
ree
xtr
act
edf
romt
heb
ook
sof
Jumat
rad
ersf
ort
hey
eare
nde
d31.
12.
2016.

Ca
pit
al 800,
000

Ma
chi
nes 600,
000

F
ixt
ure
san
dfi
tt
in
gs 200000

Ne
tpr
ofi
t 100,
000

Ad
dit
io
nal
cap
it
al 50,
000

Dr
awi
ngs 20,
000

De
bto
rs 50,
000

Ca
sh 100,
000

St
ock 50,
000

Cr
edi
to
rs 70,
000

Re
qui
re
d:p
rep
areJ
umat
rad
ersb
ala
nces
hee
tasa
t31.
12.
2016. (
5mk
s)

22.
Hig
hli
ghtf
ourme
asu
rest
ake
nbyt
heg
ove
rnme
ntt
oen
cou
rag
een
tre
pre
neu
ria
lpr
act
ic
esi
nKe
nyat
oda
y. (
4mk
s)

23.
Out
li
nef
ourf
eat
ure
soft
heb
asi
chu
manwa
nts
. (
4mk
s

24.
Out
li
nef
ourc
ir
cums
tan
cesu
nde
rwh
ichs
ign
san
dge
stu
resc
anb
eus
edi
nco
mmu
nic
ati
on. (
4mk
s)

25.
Hig
hli
ghtf
ourf
act
orst
hatd
ete
rmi
nep
opu
lat
io
nsf
ert
il
i
tyr
atei
nac
oun
try
. (
4mk
s)

EMBUNORT HSUB-COUNT Y
565/2:BUSINESSSTUDEISPAPER2
TI
ME:2½HOURS
1.a)Exp
lai
nfiv
etype
so fwhole
sal
ersf
oundi
nKe ny
a. (
10mk
s)
b)Expl
ai
nfivec
ri
ter
iathati
susedtode
ter
minethes
iz
eofafi
rm. (10mk
s)
2.a)Exp
lai
nfiv
ewaysthrou
g hwhi
chthecent
ral
bankofKe
nyacanc
ont
rol
thes
upp
lyo
fmo
neyi
nth
eco
unt
ry. (
10mk
s)
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|15
 BUSI
NESSST
UDI
ES
b)Expl
a i
nfiv
el imitati
o nsofu si
n gradioa same anso fadver
ti
sing
. (10mks)
3.
a)Explai
nfivety peso funemp loyme nt. (10mks)
b)Mu satr
adersh a dthef ol
l
o wingt ransactionsd ur
ingthemo n
thofApril
2016.
April2:soldg ood so nc r
edittoMa rysh .
1800
3:So l
dg oo dswo rt
hs h.
45, 000t oNj a uo ncredi
t
5:Bo ughts tocko nc r
editwo rths h.7600f r
omKi ma
6:So l
ds tockt oMa g ionc r
e ditatsh .
3000
8:s ol
da no ldma chi
neryo nc redittoHe ris
h.20,000
10:Bo ughtg ood swo r
ths h.2400o nc red i
tfr
omCi ku.
15:Bo ughts t
o ckwo rt
hs h .
180, 000o nc redi
tfr
omMe j
a
20:Bo ughtav a nwo rt
hs h .
250, 000o nc redi
tfr
omGa rimotor
s.
Requ i
red:recordt hea bovetran sacti
on sint herel
evantjournal
s. (10mks)
4.
a)Explai
nfived if
ferencesb etwee np ubli
cl i
mi t
edc ompan yandpart
ners
hipfor
mso fbusi
nes
sunit
s. (10mk s
)
b)SharksandSh ujaaa r
eimp o r
terso fveh i
c l
esfromJ apan.Expl
ai
nfiveter
mso fsa
let
hatmaybequot
edbytheexport
ersoftheve
hicl
es.
(
10mk s
)
5.
a)Wi t
ha naido fawe lll
abeledd iagrame x plai
nthee f
fectontheequi
lib
riu
mp ric
eandequi
li
bri
umquant
it
ywh e
nt hesuppl
yo fv
ehic
les
incr
easesinth ema r
k et
. (
10mks)
b)Expl
a i
nfiv
ep ri
nc i
plesofin su
r ance. (10mks )
6.
a)Explai
nfou rme a sure
st h
a tsho uldb etake ntoensu r
eth a
toff
ic
ema chi
nesareingo
odwo r
kingcon
dit
iona
llt
het i
mes.
(8mks)
b)Thefoll
owin gin f
o r
ma ti
onr el
a testoKe wae nt
erpri
ses.
Stock( 1.1.2016) 430, 000
Stock(31. 12.2016) 470, 000
Purchase s 930, 000
Sales 1,155, 000
Car
riageo utwa rds 25,000
Car
riagei nwa r
d s 10, 000
Returnso utwa rds 20,000
Returnsin wa r
d s 30,000
General expen se
s 100, 000
Insur
a nce 25,000
Required
Calcul
a t
e
a) Ne tsales (2mks)
b) Ra teofs tockt ur
no ver (2mks)
c) Gr ossp rofit (2mks)
d) Ma r
k–u p (2mks)
e) Ma r
gin (2mks)
f) Ne tp r
o fi
t (2mks)

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|16
 BUSI
NESSST
UDI
ES

NYERICENT RALSUB- COUNT Y

BUSINESSST UDIESF ORM4
PAPER1
TI
ME2HOURS
ANSWERANYF IVEQUEST I
ONS
1. Li
stfourit
emsc ommo ni
np artnershi
pagreement
. (
4mks)
2. St
atefourbenefi
tstha
tma yaccruetoab usine
ssfr
o mp ol
iti
calst
abi
li
tyincountry. (4mks)
3. Dukatrader
sh adgoodwo rt
hKs h.150,
000wh i
chwa sinsuredfo
rKsh.1,
000,000a gai
nstth
eriskoff
ir
e.F i
reoc
cur
redandt
he
goodswe r
ep ar
ti
all
ydest
royed,thelossbeingKsh.
90,000.Ca l
cul
atehowmu chc ompensat
ionwa sp
aidbythei
nsu
ranc
e
co
mp anytoDu katrad
er. (4mks)
4. Hi
g hl
ightf
ourb enef
it
sKenyanislikel
ytog etf
rome xpl
o i
ta
tionofoilr
ecent
lydisco
v e
redinTurk
a n
aarea.
5. Gi
vef o
u rdi
ff
erencesbet
weenab i
llofexch
a ngeandap romissor
ynote. (4mks)
6. Hi
g hl
ightf
ourme asur
esac onsume rmaytaketosati
sfyunlimit
edwants. (4mks)
7. Thefol
lowinginfor
mati
onr e
latestoBahatiNzurit
radersfortheyea
ren d
ed31/ 12/2010.
Detai
ls Ksh.
Capit
al31/12/2010 450,000
Addit
ionali
nvest
me nt 70,
000
Cashdrawings 30,
000
Drawingsofstock 15,000
Netlos
s 100,000

Requ i
red
Calcul
a t
et hec api
talo fBa hat
iNz uritradersasat1/ 1/2010. (
4mks
)
8. Highli
gh tfo u
rwa ysinwh i
chg oodsa reprepar
edf orsaleinawa r
eho use. (
4mks
)
9. Stat
efo urfu nct
ionso fa dvert
isi
nga gen c
iesinou rcoun t
ry. (
4mks
)
10. Stat
et hety peofe r
rorc ommittedine acho ft
hefo l
l
o winge nt
ri
es. (
4mks
)
Entry Typesoferr
or
(i
)Creditp urchaseo fsh .
2600f romT o t
oT raderwa srecorde
da ssh .
6,200inb o
th
thep urch aseandT o toT ra
dersa c
co unt
(i
i)Saleo ff urni
tureo nc r
edittoWa nj
rufors h.6,000wa sd ebi
te
dt oWa nj
ikus
accoun t
(i
ii
)Salesb ookwa su nde r
castbysh .210wh i
lepu rc
h as
eb ookwasa l
sounderc
ast
bys h.210
Iv Re pairsonma ch i
n er
yfors h.3,400wa sdeb i
tedi n ma chi
neryaccountas
sh.3,
400
11. Highli
gh tfo u
rreason swh yac ountr
ywo ul
dl i
ketok nowt hestr
uctureofit
spopulat
io
n. (
4mks
)
12. Theinforma t
ionbelowwa sextr
actedfromt hebo okso fLemayi
anT r
a der
sfortheyea
rended31/12/2015.
Shs.
Op eni
ngs toc k 45,000
Closingstoc k 15,000
Tu r
nover 340,000
Ma rgi
n 25%
Re qui
red:
(i
) Gr os
sp rof
it (
2mks
)
(i
i) Pu r
chases (
2mks
)
13. Stat
efo urr easonstha tma keitdif
fi
cu l
ttoa tt
ai
np erfect
lycomp et
it
iv
ec ondit
io
nsinthemarke
t. (
4mks
)
14. Stat
ewh ethereacho ft hef o
ll
o wingtransacti
onswi l
l i
ncreas
e,decreaseorhavenoeff
ecto
ntheb al
anceshe
ett
ota
ls.
(
4mks
)
(
a) De positedprivat
es avi
ngsintob usiness
(
b) Pa idac redi
torinc as
h
(
c) Wi t
h drewmo neyf romb ankforb u s
inessuse
(d)Pu r
c hasedamo to rvanb ychequ e
15. Outli
nef ou rfact
orsth atd et
ermineth esupplyofmo n eyinaneconomy . (
4mks
)
16. Outli
nef ou rreas
o nswh ytheg over
n me nti
mp osestaxeso nKenyanciti
zens. (
4mks
)
17. Fore a
cho fthefoll
owi n gsourced ocume nts,n
amet h erel
evantdaybo ok. (
4mks
)
SOURCEDOCUMENT DAYBOOK
Invoi
c eissued
Creditn otrecei
ve d
Ch equer ecei
ved
Invoi
c ere cei
ved

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|17
 BUSI
NESSST
UDI
ES
18. St
atefou
rli
mi t
at
ionsofthecon
sumerpri
ceind
exme t
h o
dofmeasur
ingtherat
eofinf
la
ti
on. (
4mk
s)
19. St
atefou
rtypesofi
n f
ormati
ontha
tama n
agermayc ommuni
cat
etothejuni
ors
. (
4mk
s)
20. Gi
vefourdi
sadvant
agesofalongcha
inofdi
str
ibut
ionofgo
odstoabu y
er. (
4mk
s)
21. Outl
in
efourcir
cumstance
sinwh i
chthegov
ernmentmaybeinv
olv
edinb us
ines
s. (
4mk
s)
22. Thecas
hb ookbel
owwa sincor
rec
tl
yprepa
red
Date Part
ic
ular
s Cash Bank Date Par
ti
cula
rs Ca
sh Ba
nk
2017 2017
June1 Balb/d 800 1,
880 J une2 Sal
es 2640
June3 Purch
ases 2520 June5 Wages 620
June4 Ele
ctr
ici
ty 500 June9 Ki
prono(cr
edi
tor
) 250
June7 Mait
ho( d
ebtor) 400 June12 Re nt
srecei
ved 1,
830
June12 Ba lc/d 1,
590 June12 Ba lc
/d 2,
350
2890 4,
800 2,
890 4,
800
June13 Ba lb/d 2,
350 J une13 Ba lbl
d 1590

Ide
n t
if
ytran
sacti
onsthatwerewrongl
yente
redinthecas
hb oo
k. (
4mk
s)
23. Expl
a i
nthefol
l
o wi
ngtermsa suse
dinbusi
ness. (
4mk
s)
(
a) Ca rt
el
(
b) Ama lga
ma t
ion
(
c) Pr i
vat
iz
ati
on
24. Ide
n t
if
ythetypeofgoodsdescri
bedbyth
efoll
owingsta
tement
sgi
veninth
eta
ble
.
STATEMENT TYPEOFGOOD
(i
)Usedtocra
teo t
hergoods
(i
i
)Requir
edfurth
erprocess
inginor
dertohaveuti
l
ity
(i
i
i)gove
rnmentisobli
gate
dt opr
ovi
dethemtoh e
rcit
ize
n
(i
v)Goodstha
ta r
eboug h
tmo ref
req
uentl
ybyc o
nsumersto
sat
isf
ycommo nwa nts
.

25.
Theg
rap
hbe
lows
howst
her
ateo
fpo
pul
at
io
ngr
owt
hof
agi
venc
oun
try
.

Popu
lat
io
n S
gr
owth
ra
te

R T

T
ime(
yea
rs)
Me
nti
onf
oure
ff
ect
soft
het
ren
dofp
opu
lat
io
ngr
owt
hbe
twe
enSa
ndT
. (
4mk
s)

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|18
 BUSI
NESSST
UDI
ES

BUURIEASTSUB- COUNT Y
565/ 1
BUSI NESSST UDI ES
PAPER1
2HOURS
1.Ou t
linefourf actorsth athinde re nt
repren eurshipinKe n ya. (4mks)
2.Stat
ef ourfac torsco nsi
d eredb eforeo ff
eringc reditfa ci
liti
estoc ustome r
s . (4mks)
3.Me nti
o nfou rc i
rcums tancesu n derwh ichama ngero fac omp anyma yus edown wardc o
mmu nica
tion. (
4mks)
4.Highli
g htfou rfactorsth atap rod ucerco nsidersbe forec h oosi
ngac hann elofd i
st
ri
butio
n . (
4mks)
5.Stat
ef ourc ha ra
c t
eristi
cso fgo od s. (4mks)
6.Identi
fyfou rty p
e sofa dve r
tis
in g. (
4mks)
7.Ah ousewi thav alueo fk sh.2,000, 000i sinsu redfo rKs h .
1200, 000a gains
tfire.Theva l
ueo fthehousedest
roy
edbyfi
veksh
.
1,
000. 0000. cal
c ul
atet hea mo u ntthein suredwa sc omp e nsa
teda f
tert heloss. (4mks)
8.Ou t
linefourf eatureso fas aving sacco unt. (
4mks)
9.Ou t
linefourr easo nsford if
feren cesinte r
mso f t
rad eb etwe enKen yaa ndUn itedStat
eso fAme ri
ca. (
4mks)
10.Statetheb e sttypeso fma ch i
n eo newo uldus etop erformt hefoll
o wingt as
k s. (
4mks)
Fu nct
io n Type
sofmachi
ne
a) Tot rimp ape rstoth ereq ui
reds ize s
b) Tod e st
roys e nsi
tiveb utunwa n t
e dd o cume nt
s.
c) Tof oldd ocu me nts,putth emi ne n velopea ndsea lthem.
d) Toc rea t
ep o st
agei mp ressi
o no nt hee nvel
ope.
11.Me ntionfo urc hal
len gesth atKe nyama ye ncoun t
e rind evel
opingp lanninga tthefor
mu lat
ionstage. (
4mks)
12.Listfourp rob l
emso fu si
nge x penditurea pproachi nt h ecalcul
ationo fn at
iona l
income. (
4mks)
13.Statethee ffectsoft hefo l
lowi ngtran sacti
onso nt h eb alancesh eettotal
s . (4mks)
TRANSACT I
ON EF F
ECT
e) Pa i
dc red i
torsb yc heque
f) So l
dg oodso nc redit
.
g) Co nve r
tedp erson alcarfo rb usinessu se
.
h) De pos i
tedc ashin t
ob a nk.
14.Ou tl
inefou rb enefi
tst hatMr . Kama uwi llgetb yb ein game mb erofc apit
alSACCO. (4mks)
15.Thef oll
owi ngi nforma ti
onr elatestome rutrad er
sf o rth eyearen ded31De ce mber2017. (
4mks)
Sa l
es 1000, 000.
Op enin gs t
ock 100, 000.
Closin gs t
o c
k 200, 000.
Gr ossp rofi
ts. 200, 000
Calc
u l
aterateso fs t
o cktur nover. (4mks)
16.Me ntionfo urme t
ho dst hatde ter
mi neth ep r
iceso f co mmo di
ti
esint hema r
k etapar
tfromp r
iceme chani
sm. ( 4mks)
17.Statefourp rincipleso fpu bl
ice xpen di
ture. (4mks)
18.Hig hl
ightfo urre a
so nswh yth eKe nyanc o nsume ro rg aniz
a t
ionsh aveb eenine f
fec
ti
veinp r
ote c
ti
n gconsu
me r
.(4mks)
19.Uset hefo l
lo wingin forma t
ionf orNg ugiWh o l
e salerstop reparesa l
esr etur
nd a
yb ook. (
4mks)
2017
No vemb er1 Emi l
yr eturnedg oo dswo rt
h .Ksh .1000.
No vemb er10. Natha nreturne dg o odsv a
lueda tksh .
900.
No vemb er15. Re t
urn edg ood st oCh r
iswo r
th. Ksh.500.
No vemb er30. Mu thinjareturn edg oodswo rthk sh.800.
20.Identif
yfives tepsta keni npr ocuringa nI nsurancec ove r. (5mks)
21.Statethreef actorswi thinab u sinessthatma ya f
fec titsp er
forman ce. (
3mks)
22.Rec ordthef o l
l
o wingt ransactioni nther elevantle dge ra c
coun t
s.
2019.
Jan. 1s tarte
dab usi
n esswi thKs h.100, 000a tth eb ank.
10. Bo ugh tg oodsv alueda tksh .2000b yc h eque.
23.Statefourwa yst hroug hwh ichaf a r
mma yac quireamo no pol
yp ositi
on. (4mks)
24.Ken yaiso neo fthec oun t
rie
si nt hewo rldth atise xp eri
e n
c i
ngu nemp loyme ntp r
oblem.Identif
yf ou
rcausesoft
hisp
robl
em.
(
4mks)
25.Statefourd i
ffer
e ncesb etwee ns haresa ndd eben t
u res (4mks)
Sha res De bentures

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|19
 BUSI
NESSST
UDI
ES
BUURIEASTSUB- COUNTY
BUSINESSST UDIES
PAPER2
21/2HOURS
1.a)Ex
p l
ai
nfiveshort
comingsofdi
rectproduct
ion. (10mks
)
b)Ou t
li
nefiv
ed if
fe
rence
sb e
tweenac o-
o pe
rat
ive
ssoc i
et
yandap ri
vatel
imi
tedcompany
. (
10mk
s)
2.a)Expl
ainfi
veme asur
estoundert
akeino rd
ertoinc
reaseef
fi
cien
cyo fawareho
use. (
10mks)
b)Expl
ainfi
veb ene
fi
tstha
two ul
daccruetoab us
inesstha
texpandsit
sscal
eofoper
ati
on. (
10mk
s)
3.a)Expl
ainfourfea
tur
esofamo nopoly. (8mks
)
b
)T hefo
llo
win gtr
ialb
ala
nceb e
longstowa ki
li
tra
dersasat30thJ
un e2016.
Wa kil
iTradr
es
Tri
al ba
lance
Asa t30thJun
e2016

Dr
. Cr
.
St
ock30/ 06/15 4000
Capi
tal 162,
300
Pur
c ha
sea ndsal
es 35,000 70,
000
Drawings 6,
000
Fur
n i
tur
ea ndfi
tt
in
gs 20,000 ………………
MotorVehicl
e 150,000 ………………
Debtor
san dcre
dit
ors 8,000 12,
000
Ret
u r
ns 2,
000 4,
800
Dis
count 800 700
Wagesands a
lar
ie
s 15,
000 ……………
Rent 3,
500 …………….
In
surance 2,
100 ……………. .
Commision 400 ……………. .
Bank ……………. 3,000

Ca
sh 6000
52,
800 252,
800

Re
qui
re
d
i
) Prepa
reat
rad
ingp
rof
i
tan
dlo
ssa
cco
unta
ndab
ala
nces
hee
ta t30thJ
sa une2016. (
12mk
s)

4.
a) On1stJ
an2017Do
nat
rad
ersh
ad,
sh.
110,
000i
nha
nda
nd50,
000(
cr)Ba
nk.Du
rin
gth
emo
nth
,th
efo
ll
owi
ngt
ran
sac
ti
onst
ook
pl
ace

Jan.2 Ca shsale
s40,000.
“ 3 Pa i
dp ost
ageexpe nses4100i ncash.
“ 5 Re cei
vedthefoll
owin gchequesf r
omd ebt
orsafterthey
h a
dd educ
tedac ashd i
sco u
nto f2%i ne achcase.
Kama uKsh.2450, LabanKs h.9604a ndTu giKsh2774.
9 Pa i
dt h
efoll
owin gcredit
orsinc ashandi neachc asededu
cted2%c as
hd i
sco
u n
t,Wil
l
yKsh.
2000a ndYal
a
Ksh.6000.
13 Ca shsale
sdirect
lyb akedKsh10, 000.
16 T ookKsh.11,000f r
o mth eoff
icea n
dd eposite
di nthebusi
nessb
a n
ka cc
ount.
19 So ldgoodswo rt
hKs h.18000o nc r
edittoKiyoma .
21 Re cei
vedKsh.18000c a
shf r
omOma nins e
ttl
eme ntofhi
saccountofKsh
.20,000.
26 T ookoilca
sht otheb ankleavi
ngKs h.4000o nly.
Requi
re
d:Prepa
read ul
yb al
ancedthreec o
lumnc a
shbo ok. (
10mks)
b) Exp
lai
nfiv
echaract
eri
sti
csofalif
eassurancep oli
cy. (10mks
)
5. a)Stat
eandexplai
nfi
v eemergi
ngtrend sintheBa nki
n gindustry
. (
10mks)
b)Expla
infi
venegat
iveeffe
ctsofr
ap i
dp opu l
at
iong rowth. (
10mks)
6. a)Expla
infi
vereas
onswh yac ount
rywo ul
dc arr
yo utdevelopmen tp l
annin
gb ef
oreun
d e
rtak
ingit
sproj
ect
s.(
10mks)
b)Expla
infi
vebenef
it
so fadopt
ingtheu seo fanopeno ffi
celayout. (
10mks)

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|20
 BUSI
NESSST
UDI
ES

TETUSUB-COUNT Y
Fo r
mF OURBusi
nessStu
dies
Pa p
er565/1
Time:2Hours
PAPER1
1.L
istf
oursour
ceso
ffundstha
twou
ldb
eataSo
lep
rop
rie
tor
’sd
isp
osa
l. (
4mk
s)

2.Gi
vef
ourc
ir
cums
tan
cesu
nde
rwh
ichamo
nop
olywo
uldc
omei
nt
oex
ist
enc
e. (
4mk
s)

3.Me
nti
onf
ourme
asu
rest
hatt
heg
ove
rnme
ntwo
uldt
aket
opr
eve
nte
ntr
yofc
ont
rab
ands
uga
rint
hec
oun
try
. (
4mk
s)

4.St
udyt
hef
ol
lo
win
gdi
agr
ama
nda
nswe
rth
equ
est
io
nth
atf
ol
lo
ws.

Ou
tpu
tpe
r

wo
rke
r Y

X Z

P
opu
lat
io
n

(
i)Gi
vet
wome
ri
tso
fth
ese
cti
onl
abe
ledX (
2mk
s)

(
ii
)Id
ent
if
yth
epa
rtl
abe
ledYi
nth
edi
agr
am. (
1mk
)

(
ii
i
)Gi
vet
wod
eme
ri
tso
fse
cti
onl
abe
ledZi
nth
edi
agr
am. (
2mk
s)

5.T
hef
ol
lo
win
gin
for
mat
io
nwa
sex
tr
act
edf
romt
heb
ook
sof
Kar
imi
Ent
erp
ris
e n28thF
so eb2019.

Fi
xedass
ets 400,000
Cr
edit
ors 120,000
Debt
ors 150,000
Acc
ruedrent 30,
000
St
ock 145,
000
Pr
epai
dRe n
t 5,
000
Capi
ta
l 550,000

Requ
ire
d:
(a
)Deter
min
eth
ewo
rki
ngc
api
ta
lof
theb
usi
nes
s. (
3mk
s)

(
b)Ca
lcu
lat
eth
ecu
rre
ntr
ati
o: (
1mk
)

6.L
istf
ourb
ene
fi
tso
fob
ser
vi
ngb
usi
nes
set
hi
csi
nth
eco
urs
eof
doi
ngb
usi
nes
s. (
4mk
s)

7.I
nea
cho
fth
efo
ll
owi
ngc
aseac
ommu
nic
ati
onl
i
nei
sex
pla
ine
d.St
udyi
tan
did
ent
if
yth
eli
neo
fco
mmu
nic
ati
ondes
cri
bed
.
(
4mks)

a
)Th
epr
inc
ipa
lad
dre
sse
sth
eas
semb
ly………………………………………………………….
.

b
)Allcl
asss
ecr
eta
ri
esh
oldame
eti
ngi
nth
eha
llt
odi
scu
ssi
ndi
sci
pl
in
eint
hei
r
c
las
ses
………………………………………………………………………………………….

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|21
 BUSI
NESSST
UDI
ES
c
)Cabine
tse
cre
tar
yofe
duc
ati
onp
ass
edb
yth
esc
hoo
lan
dga
vea
nad
dre
ssa
shep
roc
eed
edt
oan
ati
ona
lra
ll
yinan
ear
by
s
tad
ium………………………………………………………………

d)Endofy
earp
art
yhe
ldint
heschoolat
te
ndedb yBOMme mb e
rs,t
eacher
s,stu
dentsands
upp
ort
st
af
f…………………………………………………………………………………….
8.St
atet
heboo
kofor
igi
nal
ent
ryusedinrec
o rd
ingeac
ho fthefol
lowingtr
ansact
io
n so
fKOMUtr
ader
s. (
4mk
s)
Tr
ansa
cti
on Booko
for
igi
nal
ent
ry
(
i) Komuret
urnedgoodswo r
thsh.9,500toTe t
utra
ders
(
ii
) Nanz
araret
urne
dg oodswort
hs h.2900
(
ii
i
) Pur
chase
dg ood
so ncredi
tfr
omSa nai
peiforsh
.5,000
(
iv
) Sol
dgoodsonc r
editt
oWa nj
alaforsh.20,000

9.Us
ingawe
lll
abe
ll
edd
iag
rami
l
lus
tr
atet
hec
ir
cul
arf
l
owo
fin
comei
nat
wos
ect
ore
con
omy
. (
5mk
s)

10.
Giv
efo
urc
ir
cums
tan
ceswh
enac
ons
ume
rma
yen
joyt
hes
erv
ice
sgi
venb
yawa
reh
ous
e. (
4mk
s)

11.
Ide
nti
f
yth
eel
eme
ntso
ftr
ans
por
ttowh
iche
acho
fth
efo
ll
owi
ngi
te
msr
el
at
e. (
4mk
s)

a
) Hu
mane
ff
ort
………………………………………………

b
) Bo
dab
odas
hed
…………………………………………

c
) Sc
hoo
lbu
s…………………………………………………

d) LakeVic
tor
ia
……………………………………………….
12.
Sug
ges
tfou
rb e
nef
it
stoat
rad
erwh
oop
era
tesas
upe
rma
rke
tin
ste
ado
fak
ios
k. (
4mk
s)

13.
Hig
hli
ghtf
ourl
i
mit
at
io
nso
fba
rte
rtr
adet
oane
con
omy
. (
4mk
s)

14.
Thefo
ll
owings t
atement
srefe
rtodif
fe
rentoff
i
celay
ou t
s.I
den
ti
fyth
etypeofof
fi
cela
youte
xpl
ai
nedi
nea
cho
fth
ef o
ll
owin
gst
at
eme
nts
.
(3mks)
a) Se niorma na
gersar
ea s
sig
nedsepara
teroo
msf ro
mwh er
etheycoo
rdi
nat
eb u
sine
ssac
ti
vi
ti
es
b) Hi ghc l
assoff
ic
ed es
igne
dtoenhancethei
ma geoft
heins
ti
tu
tio
n
c) Al lst
affmemb e
rsopera
tefr
omt h
es ameroom
15.
Sta
tefou
ru sesofabala
ncesheet
. (4mks)

16.
Ide
nti
f
yth
reel
eve
lso
fin
fl
at
io
n. (
3mk
s)

17.
Bas
ingy
ourk
nowl
edg
eonf
i
nan
cia
lra
ti
os,
comp
let
eth
efo
ll
owi
ngt
abl
e. (
4mk
s)

Op
eni
ng Cl
osi
ngs
toc
k Ne
tpu
rch
ase
s Cost
sof Ne
tsa
les Gr
ossp
rof
i
t Av
era
ges
toc
k Ra
teofs
toc
k
st
ock goo
ds tu
rnover
s
old
(
a) 50,
000 170,
000 240,
000 (
b) 30,
000 (
c) (
d)
18.
Thef
oll
owingtr
ialbalan
cewaspr
epa
redbyani
ncomp e
ten
tac
countscl
erk
.Pr
epa
reac
orr
ecto
ne. (
4mk
s).
Ng uyo
Tri
al ba
lance
Asa t30thj
une2015
DR CR
Credi
tor
s 10,000
Debtors 14,
000
Retur
nsinwa r
ds 7,500
Drawings 31,000
Land 60,
000
Retur
nso ut
wa r
ds 15,000
Generale
xpenses 10,
000
Capit
al 100,000
Furni
tur
e 8,
000
Acruedrent 5,
500
163,500 97,
500
19.
Fore
achofthefoll
owingdayboo
ksst
at
ethere
leva
ntsour
cedocu
me n
t. (
5mk
s)
Dayb ook So
u r
cedocument

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|22
 BUSI
NESSST
UDI
ES
(
i) Sal
esJou
rnal
(
ii
) Sal
esr
etur
nsjour
nal
(
ii
i) Pur
chas
esjour
nal
(
iv) Pur
chas
esret
urnsjo
urnal
(
v) Cas
hrecei
pt
sjour
nal
20.
Ide
nti
fyeac
hoft
hefo
ll
owingcat
egor
ie
so fGo
ver
nme
nte
xpe
ndi
tu
re. (
3mk
s)

(
i) Go ver
nments
pend
sfundsonregul
arbasi
s…………………………………. .
(
ii
) Go ver
nmentf
i
nance
sspeci
fi
cproj
ectsai
meda tf
aci
l
it
at
ingeco
nomi
cgr
owt
h………………………….
(
ii
i
) Go ver
nmentg
iveb
ursar
ie
stostu
dent……………………………………….
21.
Sta
tefou
rre
aso
nsth
atmayma k
eafir
mt ousecompeti
ti
veadv
ert
is
ing
. (
4mk
s)

22.
Ide
nti
f
yth
ety
peo
fre
sou
rced
esc
ri
bedi
nea
cho
fth
efo
ll
owi
ngc
ase
s. (
4mk
s)

(a) Canberest
oredaft
eruse……………………………………………………. …………
(b) Crea
tedbyma nt
oa ss
isthi
minpro
duc
ti
onofgoods
………………………………….
(c) Avai
le
db ynat
ure………………………………………………. .…………………….
(d) Phys
ical
eff
ortputbyma nt
opro
ducegoo
dsandser
vic
es……….
.……………………
23.
High
li
ghtf
ourcir
cumstance
su nd
eraf
ir
mma ybel
ocat
edneart
heso
urc
eofr
awma
ter
ia
ls. (
4mk
s)

24.
Ide
nti
f
yfo
urt
ype
sofu
nemp
loy
men
tan
dme
nti
onama
jorc
aus
eino
fea
ch. (
4mk
s)

25.
Thefol
lowingi
nfor
mati
onrel
atestoMimi
Tra
dersfo
rtheye
arend
ed30thJ
une2019. (
5mk
s)
Openi
ngs t
ock 25,000
Clos
ingstock 35,000
Purc
hases 190,000
Ret
urnso u
tward
s 5,000
Margi
n 20%
Requi
redatradi
ngacc
ountf
ort heye
aren
ded30thJ
une2019.

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|23
 BUSI
NESSST
UDI
ES
TETUSUB- COUNT Y
FormF OURBu si
nessStu
dies
Paper565/2
Ti
me :2½Ho ur
s
1.
(a)Expl
ainfivefact
orstha
tleadt
odecli
neinthel
evelofna
tiona
lInco
meo faCount
y. (
10mks
)
(b
)E x
plai
nf i
vef a
ctor
sc o
nsid
eredwhensele
cti
ngachannelofdi
str
ibu
ti
ontou s
e. (
10mks
)
2.
(a)Expl
ainfo urci
rcumst
anceswhenariskwoul
dn o
tquali
fytobecover
edbyanins
ure
r. (
8mks
)
(b)Thefoll
owi ngbal
anceswereex
tra
ctedfr
omt h
eb ook
sof Uni
tyEnt
erpr
ise
sasat
30thJune
,2016. Shs

Sa
les 400,
000 St
oc 1stJ
k( uly
,2015) 5,
000

St
oc 30thJ
k( une
,2016) 8,
000 Di
sco
untr
ece
ive
d 4,
000

Di
sco
unta
ll
owe
d 6,
000 I
nsu
ran
cep
remi
um 4,
000

Pr
emi
ses 300,
000 F
ixt
ure
san
dfi
tt
in
gs 200,
000

Ca
rri
agei
nwa
rds 7,
000 Ca
rri
ageo
utwa
rds 3,
000

Ba
nkl
oan 23,
000 Ba
nko
ver
dra
ft 50,
000

Cr
edi
to
rs 40,
000 Ca
shi
nha
nd 10,
000

De
bto
rs 12,
000 Dr
awi
ngs 14,
000

Ca
pit
al 340,
000 Gr
ossp
rof
i
tma
rgi
n 25%

Prepare;
i
) Unit
yEn terpr
ise
sPr o f
ita ndlossAc coun t
sfo rtheyeare nded30thJ
une2016. (4ma r
ks)
i
i)Unit
yEn terpr
ise
sBa lances heetasa tth
a tdate. (8marks
)
3(a
)Expl
ainfi
vep robl
emsf a cedb yac ou nt
ywi thab i
gp erc
en t
ageo fayout
hfu
lpopul
ati
on. (10mks)
(b
)Expl
ainfi
vee xte
rnal f
ac t
orst hatane ntrep
re neurn e
e dtoc onsi
derwheneval
uat
ingabusin
essopp
ortu
nity. (10mks)
4(a
)Usingad i
agram, e
x pl
a i
nt hee f
fectsofap o si
tiveshif
tof ade mandcur
veontheequil
ibr
iumpoi
nt,p
ric
ea ndqua
nti
ty.
(10mks)
()On1stAp
b r
il2016, Twig aEn ter
p r
isesha dsh .
150, 000c ashinh andandabankcredi
tbal
anceo
fsh.54,000.
Du r
ingt
hemo nt
h the
fo
ll
owingtr
an s
ac t
ionstookp lace .
Apri
l3Ca shsa l
essh s
. 114,900
4 Ad ebt
o rset
tl
edh i
sa cc o
u ntofKsh s.400,000b yche q
u eles
s5%e a
chd i
sco
u nt
.
10Paidsalari
esks hs.35, 400i ncash
15Se tt
ledac redi
tor’sac counto fKsh.150, 000b yac he queles
s3%c as
hd i
sco
u nt
.
22Re cei
ve dcashKs hs. 84,600f romPe n gotradersaft
e rdeducti
on6%c a
shdisco
unt
24Wi thdrewk sh.120, 000f romb usi
nessb an kforoff
iceu se
.
26Ca shsa l
esk s
h s.90, 000b ankedd i
rectl
y
30De positedallcashe xce p
tk sh.10,800
REQUI RED:Pr eparead ul
yb alancedth r
e ec o
lumnc a s
hb ook. (10mks)
5(a
)Highl
ightfi
veb enefi
tso fde l
ocaliz
ationo ff
irmsi nane con omy. (10mks
)
(b)Out
lin
ef i
ved i
ff
erence sbe tweenac o oper
a t
ives oci
etyandap r
ivat
eli
mit
edcompany. (10mks)
6(a
)Expl
ainfi
vewa y
so fcon tr
o ll
ingc os
tp ushin f
lati
o n. (10mks)
(b)Exp
lai
nfivec har
acterist
icso fecono micresou rces. (10mks)

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|24
 BUSI
NESSST
UDI
ES

KANGEMA
565/1
BUSINESSST UDIES
PAPER1
Ti
me2h o
urs
1. Hi
ghli
ghtfou
rwa ysinwhic
hafir
mc a
nimpro
vepro
duc
ti
vi
tyofi
tshu
manres
our
ces
. (
4ma
rks
)
2. Out
li
nefourpossi
blecons
eque
ncesofpoo
rar
ran
gemen
tofgo
o d
sinawar
ehous
e. (
4ma
rks
)
3. Th
erearemissi
ngfigur
esi
ntheta
blebel
ow. (
4ma
rks
)

Cal
cul
at
e:
i. W= ..
...
...
....
..
..
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.
ii
. X=. ....
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ii
i
. Y=. .
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iv
. Z=. ...
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.
4. Statefourr easonswh yco nsu me rshavetoma k
eac hoi
cewh ens at
isf
yingc omp et
in
gwa nts
. (
4ma rks
)
5. Statefourf act
o r
st hatwo uldi nfl
u encethea moun tofmo neythatanin di
v i
dualmayh oldfor
tr
an sa
c t
ionp urpos es. (
4mark
s)
6. Outlinefou rcir
c ums tancesu nd erwh i
cha ninsuran c
ec ompanyma yr efusetocomp ensatetheins
uredinti
meso fl
oss
.
(
4ma rks
)
7. Statefoure rrorsthatma yn o taffectthebalancingo fatri
albal
an ce
. (
4mark
s)
8. Outlinefou rfunctionso ftheKe nyaBu reauOf Standards(KEBS). (
4ma rks
)
9. Thei n
fo r
ma t
iong ivenb elowwa se xt
racte
df romth eb ook
so fKamb oT ra
d er
so n31StMa y2016.
Kshs
Purchases 260, 000
Ope ni
n gsto ck 75, 000
Carria
g eo np urcha ses 12, 500
ClosingSt ock 27, 500
Goo dswe res olda tama rgino f25%.
Usingt hein f
orma tionp r
o vi
d eda b o
ve, p
repareKa mb otr
adingac c
oun tforthep e
rio
de n ded31stMay2016. (5ma
rks)
10. Outlinefou rdif
feren cesb e
twe enamo nopolyandamo nop o
lis
ti
cc omp eti
tion. (
4mark
s)
11. Namea nyt hreee quipme ntth atareu sedind ocume ntre
productio
ni na no f
fic
e. (
3mark
s)
12. Outlinefou rreason swh ys a
v ingsa ndc r
editCo -
op era
ti
veSo ci
etie
sa r
eb e comingveryp opul
arinKenyatoday
.
(
4ma rks
)
13. Namet hed ocume n tsdescri
b edb ythestat
eme ntsg i
venb el
owa susedi nInternat
ionaltr
a d
e. (
4ma rks
)
a. Re questsfo rpayme ntb e f
oregoo dsared el
iver
ed...
..
...
..
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b. Sh owso wn er
sh i
po rt i
tleofimpo r
tedg oods..
..
..
...
..
..
..
...
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..
...
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c. Sh owt hec o u
ntryo f ma nufact
ureo fgood s
...
..
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.
d. Sh owt het rans
p ortc hargesforgo ods.
..
....
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..
14. Thef ol
lowin gb al
an ceso fassetsa ndliabi
li
tieswe reprovi
dedb yNjoguEn te
rpri
seson
31stDec e
mb er2017.
Sh s
.
Ban koverd raf
t 160, 000
Land 400, 000
AccruedEl ec t
ri
c i
tyb il
l 100, 000
Stock 20,000
Deb t
ors 40,000
Drawin go fSh s4,000we r
ema d eeverymo n t
hd uringtheyear.Pre
p areab ala
nceshe etasat31stDecember2017.
(
4mark
s)
15. Me nti
o nfou rno n–t axinter
n also urcesofrevenuet othegovernmen t
. (
4mark
s)
16. Ab usinesso ppo r
tu nit
yma ye xi
stwh eretherearec ert
aingapsinthema rket
..Highl
ightfoursuchg a
ps.( 4ma rks
)
17. Outlinefou rcir
c ums tancesu nd erwh i
chat raderma yc h
o os
etot r
ansp orthisgoodsb yair. (
4ma rks
)
18. Statefouru seso fNa tionali
n co mes tat
ist
ics. (
4ma rks
)

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|25
 BUSI
NESSST
UDI
ES
19. Hi
g hl
i
g htf
o u
rfeat
uresofma i
lor
d ershopsinh ometra
d e. (
4ma r
ks)
20. Outl
inefourreas
onswh yafir
mma ycho osetoremai
ns mal
l. (
4ma r
ks)
21. St
atefourli
mitat
ionsofusi
nginterne
ta same ansofcommu ni
cati
ondesp
it
eitspo
pu l
ar
it
yint
hewo
rldt
oda
y.(
4ma r
ks)
22. Di
sti
ng ui
shb e
tweenthefol
lowingtermsa susedinpopulat
ion
.
a.
Immi gra
tionande mig
rat
ion. (
2ma r
ks)
b.Decli
nin
gp opula
tionandunderp o
p ul
ati
o n. (
2marks
)
23. Outl
inefourreas
onswh yethi
calprac
ticesareneces
saryinprodu
ctpr
o mot
ion. (
4ma r
ks)
24. Hi
g hl
i
g htf
o u
rp r
oblemsthatKen
y ama yexp e
rie
nceinimplement
ingi
tsdeve
lopmentpl
ans
. (
4marks
)
25. Li
stfourfa
ctorst
hatc a
nc a
u s
edema ndp ulli
nfl
ati
on. (
4marks
)

KANGEMA
565/2
BUSINESSST UDIES
Pape
r2
Ti
me2½h our
s
AnsweranyFIVEq u es
tio
n s.
1. a. De scr
ibea nyfi
vefeatureso feconomi cr esource
s . (
10ma r
ks)
b. Exp l
ai
nf i
v edis
advantagest hatac o
u ntryma ye xpe r
iencefromi mposingtra
der estr
ic
tionso ntr
adingp art
ners
.
(10ma rk
s)
2. a. Exp l
ai
nf i
v edif
fer
encesb etwe enap u bliccoop e
ra t
ionan dap ri
vateli
mitedco mp a
ny. (
10ma r
ks)
b. Thef ol
lowinginformationwa se xt
ractedf romt heb ookso fKemat rader
sasa t31stDe c2009
BankL oan 567000
BankL oaninterest 1440
Capit
al 1680000
Closi
ngs t
ock 87000
Credi
tors 272400
Debtors 140280
Discountall
owe d 170400
Elect
ri
ci
ty 30240
Furni
tur
e 489804
Furni
tur
er epairs 86436
Grossprofi
t 624720
Ma i
ntenanceo np r
e mises 72000
Mo t
orve hi
cl
e 1080000
Mo t
orve hi
cl
ema intenance360000
Premise
s 648000
Rentrecei
ved 144000
Sundryexpen ses 122520
Prep
a r
e:
i. Profi
tan dlossaccou n
tf orKe matrader sforthey earend ed31stDec2009.
s
t
ii
. Balances heetasat31 De c2009. (
10ma r
ks)
3. a. Hig h
lig
h tfiv
ep r
ob l
emse n coun t
ere
dwh enme asu ri
ngthen ati
on a
lincomeo fac ountry. (10ma rk
s)
b. Exp l
ai
nf i
v eli
mita
tionsab usi
ne s
sthatr eli
eso nth eu s
eo fmo t
o rcycl
etransportisli
kelytoe nc
ou nter.
(10ma rk
s)
4. a. Exp l
ai
nf i
v equal
it
ieso fas uccessf
ulsa l
e sper
so n. (
10ma r
ks)
b. Wi t
ht hea i
do fawe l
llabelle
dd i
agram, explai
nt hee ff
ectsonth eequil
ibri
umo fanincrea
sei nthesu ppl
yo f
car
rotswh il
ethed ema ndrema i
n sco nst
a nt (10ma rk
s)
5. a. On1s tJ une2014, Kinyu ahadSh s.110, 000c as handSh s
.500, 000a tbank. Duri
n gth
emo nt
h
th efol
lowi n
gt r
ansacti
o nstoo kpla
c e;
June2 :Ca shs alesbankeds h.70,520
June5 :Bo u ghtfurni
turei ncashs h9000
June10:Pa idJ oshua,acre dit
ors h.188000b ych eq
u einful
lsettl
eme ntofhisaccou ntaf
ter
deduc t
ing6%c ashd iscount.
June12:Re ce i
vedac he
q ueo fsh117, 600fromJ umaa f
terall
owingh imac ash d isco u
ntofsh.2,
400.
June15:Pa i
ds alari
essh .68000c ash.
June20:Wi thdrews h.100, 000f ro
mb a n
kf oroff
iceus e
.
June29:Awi n o,ad ebt
orp aidh eracc ountofs h
.150000b ychequ ele
ss10%c ashd is
c ount
June30:De pos i
teda l
ltheca shint oth ebanke xceptsh.27400.
Requir
ed:a .Prepareat hr
eec ol
umnc ashb ooka n dba l
anc eitoff
. (10ma rk
s)
b
.Ex p
lainfiveben ef
it
sthatwo u l
da ccruetoac ountryth atencouragese nt
reprene
urship. (10ma rk
s)
6. a
.u s
ingas ui
ta
b l
ed iagr
am, explaintheh abi
tso f s
eller
si na noli
g opol
yma rket. (
10ma r
ks)
b
.Ou tl
in efi
vefe atu
resof aneffi
c i
enttaxsystem. (10ma rk
s)
fo
rma r
kingscheme sinboxMRCHEPKWONYo no 724251706 Page|26
 BUSI
NESSST
UDI
ES

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|27
 BUSI
NESSST
UDI
ES

KANDARA
565/
1-BUSINESSSTUDI
ES–Pape
r1
FORM4
TI
ME2HOURS
1.Ou
tl
inef
ourbusi
nes
sac
ti
vi
ti
es [
4mk
s]
2.Sta
tefoure l
ementso feco nomi cen vi
ron mentthatma yinfl
ue n
cetheo per
ati
onofab us
iness [4mks]
3.Highl
ightfourfact
orsth atde ter
mi neeffici
encyo fatran
sp ortsy
stem [4mk
s]
4.Outl
inefourfact
orsth atcanl eadt othes uccesso f
ab usi
n ess [4mks]
5.Highl
ightfourfact
orstoc o nsiderb e
foreb uyingo f
fi
ceeq ui
pme nt [4mk
s]
6.Sta
tefourc i
rcumsta
n ceu n derwh ichac r
editnotecanb eissued [4mks]
7.Indi
cat
et hebestdocu me nttou seine a chof t
hefoll
owin gcircumsta
nc e
s [4mks]
Circ
u ms t
an ce Docume nt
a. T ou pdateac atal
og ue
b. T oreplyt oas peci
ficletterofinqu i
ry
c. T os howt hec o ntentinac ontainer
d. T oc orrectanu nderchargeint heinvoi
ce
8.Highl
ightfourfeat
ureso fap r
ivateli
mi tedcomp any [4mks]
9.Outl
inefourreasonsforg o v
e rnme ntinvolve
me ntinb usi
ness [4mks]
10.Outl
inefourelementso fc ommu nicat
ion [4mk
s]
11.Highl
ightfourfac
torswh ic
hma yl i
mi ttheeff
e c
tiv
enesso fawa rehouse [4mks]
12.Highl
ightfourcontentso fa ninsuranc epolic
y [4mk
s]
13.Highl
ightfourcir
cums tan c
e su nderwh ichat ra
d e
rma yo f
ferafte
rsalesse
rvi
ces. [4mks]
14.In
d i
cat
et hetypeofs upplyr epresentedb yeacho ft
h efoll
owings t
atement [3mk
s]
a.Su pplyoftwoo rmo rec ommo di
ti
e sthataresuppli
edto get
h e
r……………………………………. .
b.Su pplyofap r
od uctth atcanb es upp l
i
edf ro
mmo rethano nesource……………………………………
c.Su pplyofonec ommo dityleadst oar educti
onins upplyofa no
therbecaus
etheyusesimil
arf
act
orsof
produ
ction…………………………………………………….
15.Highl
ightfourreas
o nswh yap ro ducerma yp re
fertoestabl
ishh i
sbusines
sn e
arsour
ceo fra
wma te
ri
al. (4mk
s)
16.St
atefourco ndi
ti
onsn ecessaryforp ricedi
s c
riminat
ioninmo nopol
yma rke
t (4mk
s)
17.Outl
inefourfact
orst hatma yma keap roducertobypassthewh o
lesa
lerwhendist
ri
buti
ngg oods
. (4mks
)
18.Thediagramb el
ows h owst h ecircul
arf l
owo f i
ncomei nat wos ec
toreconomy.Expl
ai
nth emeani
ngofarr
owsA,B,
C, a
ndD
[4mks]

F
IRMS

A C B D

HOUSEHOL
DS

19. Outl
inefourne
gat
ivei
mpli
cat
io
nso
fov
erp
opul
a t
iont
oane
con
omy
. [
4mk
s]
20. Cal
culatet
hemiss
ingf
igu
res [
4mk
s]
Asse
sts Lia
bili
ti
es Ca
pit
al
200,
000 130,000
fo
rmar
ki
ngsc hemesi
nboxMRCHEPKWONYono724251706 Pa
ge|28
 BUSI
NESSST
UDI
ES
50,
000 80,000
350,
000 210,000
20,
000 40,000
21.
Thef
oll
owi
ngt
ran
sac
ti
onswer
eext
rac
tedf
romth
eb o
oksof
JumaWho
les
ale
rsL
imi
te
d(2008)
Jan1:Sol
dgo
odsoncr
edi
twort
hkshs
.400,
000toSha
hTrad
ers

J
an10:Pu
rch
ase
dgo
odswo
rthKs
h.600,
000i
nca
sh [
4mk
s]

Re
qui
re
d;r
eco
rdt
hea
bov
etr
ans
act
io
nsi
nt
oth
ere
lev
ant‘
T’a
cco
unt
s

22.Out
li
nefou
rwa ysthatthegov
ernmentcanusetopr
omo t
eexpo
rts [
4mk
s]
23.Out
li
nefou
rg o
alsofdevelo
pmentinKenya. [
4mk
s]
24.Hi
ghli
ghtf
iv
ep r
inc
ipl
e sofgov
ernmentexpe
ndit
ure
. [
5mk
s]
25.Out
li
nefou
rcirc
ums t
an c
esunderwhi
chc as
hwithorde
rma yb
eu s
ed [
4mk
s]
KANDARA
565/2
BUSINESSSTUDIES
PAPER2
TI
ME2HRS30MI N
ANSWERANYF IVEQUEST IONS
1a )Expl
ai
nfi
vefact
orsthatmaycontr
ibut
etoeff
ic
ienc
yi ntheope
rat
io
nso
fawa
reh
ous
e (
10ma
rks
)

b
)Ex
pla
inf
i
vef
act
orst
hatma
yca
useb
usi
nes
ssu
cce
ss. (
10ma
rks
)

2a
)Ex
pla
inf
i
ver
eas
onst
hatma
yin
fl
uen
ceab
usi
nes
sma
ntot
eamu
pwi
tho
the
rst
ofo
rmap
art
ner
shi
p. (
10ma
rks
)

b
)Ex
pla
inf
i
vewa
yswh
ichKe
nyama
yus
etoc
ont
rol
inf
l
ati
on. (
10ma
rks
)

3.
a)Ex
pla
inf
i
veb
ene
fi
tso
ftr
ans
por
ttoab
usi
nes
s (
10ma
rks
)

b
)Ex
pla
inf
i
veme
tho
dst
hatma
ybeu
sedb
yac
oun
tryt
oco
ntr
oli
mpo
rtsf
romo
the
rco
unt
ri
es (
10ma
rks
)

4.
a)Ex
pla
inf
i
vef
eat
ure
sofp
erf
ectc
omp
eti
ti
onma
rke
tst
ruc
tur
e (
10ma
rks
)

b
)Th
efo
ll
owi
ngb
ala
nce
swe
ree
xtr
act
edf
romt
heb
ook
sof
Jub
il
eeF
lou
rmi
l
l n1stJ
so uly
,2013.

Sh
s

Eq
uip
men
t 300,
000

Mo
torv
an 450,
000

De
bto
rs 140,
000

Cr
edi
to
rs 180,
000

St
ock 120,
000

Ca
sh 70,
000

Ca
pit
al 900,
000

T
hef
ol
lo
win
gtr
ans
act
io
nst
ookp
lac
edu
rin
gth
eye
are
ndd30thJ
e une2014.

(
i)Bo
ugh
tgo
odswo
rths
hs.
40,
000a
ndp
aids
hs28,
000c
ash
.Th
eba
lan
cewa
sst
il
lowi
ngb
yth
een
doft
hey
ear
.

(
ii
)So
lde
qui
pme
ntwo
rths
hs80,
000a
ndr
ece
ive
dsh
s50,
000c
ash
.Th
eba
lan
ceh
adn
otb
eenr
ece
ive
dbyt
hee
ndo
fth
eye
ar.

(
ii
i)T oo
kc as
hshs12,000fr
omt hebusi
nesse
stopaysch
oolf
eesf
oran e
edychi
l
d .
REQUIRED
Pre
pareJubi
le
e’sbala
nceshee
ta t30thJ
sa une
,2014showi
ngall
it
emsinth
erel
evantcl
ass
es (10mar
ks)
5.a
)Ou tl
inefi
veci
rcumstanc
esunderwh i
chthesup
p l
ycur
vewoul
dshi
ftou
twar
dstotheri
ght
. (10ma
rks
)
b)Explai
nfi
veserv
icesof
fer
edbyc o
mme rci
alba
n k
s (
10ma
rks
)
6.a
)Ex pl
ainfi
vebenef
it
stoap e
rsonwh obuysgoodsf
romasupe
rmarke
tra
the
rtha
nfromak i
osk. (
10mar
ks)

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|29
 BUSI
NESSST
UDI
ES
s
t
b
)T h
efoll
o wingTri
alba
lan
cewase
xtr
act
edf
romt
heb ook
sof
Mur
ang
’aT
rad
erso
n31 De
cemb
er2013.
Dr.
Shs Cr.Shs
Sto
ck1/ 1/2013 22,
500
Sal
es 145,000
Purc
hase s 80,
000
Carr
iageoutwards 14,
000
Debtor
s 20,
500
Credi
tors 18,
500
Fi
xedassets 92,
000
Bankove r
draf
t 17,
500
Sal
ari
es 24,
000
Ret
urnso ut
wa r
ds 22,
400
Cashinh and 52,
500
Gener
al expen
ses 25,
200
Ret
urnsinwa r
ds 11,
500
Capi
tal 128,800

332,
200 332,
200

St
ockon31/
12/2013wass
hs16,
500
Pr
epar
e
i
) T h
et r
adi
ngan
dprof
i
tandl
ossa
cco
untf
ort
heb
usi
nes
sfo
rth
eye
are
ndd31stDe
e cemb
er2013 (
7ma
rk)

i
i
) Ca
lcu
lat
e

a)Margi
n (1ma
rk)
b
)Ra
teofst
ocktur
nov
er (
1ma
rk)
c
)Retu
rnonc a
pit
al (1mar
k)

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|30
 BUSI
NESSST
UDI
ES

GATANGA
KENYACERTIFI
CATEOFSECONDARYEDUCATION
565/1
PAPER1
TIME:2HOURS
FORMF OUR
1.Ident
if
yth
eleve
lofp
rodu
cti
onf
orea
chofth
ef o
ll
owi
nga
cti
vi
ti
es. (
4ma
rks
)

Acti
vi
ty L
eve
lofp
rod
uct
io
n
a
) Pa in
tin
gah ouse
b) Co nstr
ucti
ngaroad
c
) I nsur
ingacar
d) Dr essmaki
n g
2.St
at
efourc
urr
enttr
endsincommuni
cat
io
n. (
4ma
rks
)

3.Hi
ghl
i
ghtf
ourc
ir
cums
tan
cesu
nde
rwh
icht
hes
toc
kof
abu
sin
essma
ych
ang
e. (
4ma
rks
)

4.L
istf
ourn
ega
ti
vee
ff
ectt
hati
nf
la
ti
onma
yha
veo
nth
eec
ono
my. (
4ma
rks
)

5.Ou
tl
in
efo
urwa
ysi
nwh
ichb
usi
nes
sst
udi
esma
ybeo
fbe
nef
i
ttoa
nin
div
idu
al. (
4ma
rks
)

6.Amanu
fac
tur
ingin
dust
ryi
spl
ann
ingtocon
str
uctawa
reh
ous
ead
vic
eth
ema
nuf
act
ure
rona
nyf
ourf
eat
ure
sthatag
oodwa
reh
ous
e
s
hou
ldhavef
oritt
ofu
ncti
one
ff
ect
ive
ly. (
4marks
)

7.Hi
ghl
i
ghtf
ourc
ir
cums
tan
cest
hatma
yin
fl
uen
ceaf
i
rmt
olo
cat
eit
sop
era
ti
onsn
ears
our
ceo
fra
wma
ter
ia
ls. (
4ma
rks
)

8.St
at
eth
ech
all
eng
ese
nco
unt
ere
dinu
sin
gth
eex
pen
dit
urea
ppr
oac
hwh
il
eco
mpi
l
ingt
heNa
ti
ona
lIn
comeo
fac
oun
try
.

9.Hi
ghl
i
ghtf
ourwa
yswh
ichc
anmi
ni
miz
evi
ol
at
io
nof
con
sume
rri
ght
sbyu
nsc
rup
ulo
ust
rad
ers
. (
4ma
rks
)

10.
Thef
ol
lo
win
gin
for
mat
io
nre
lat
esT
uma
ini
Ent
erp
ris
esf
ort
hey
ear
sen
ded31stSe
p2015

Ma
rku
p25%

s
ale
s250,
000

De
ter
min
e:-

a
. Gr
ossp
rof
i
t. (
2ma
rks
)

b
. Ma
rgi
n (
1ma
rk)

c
. Co
sto
fgo
odss
old
. (
1ma
rk)

11.
Out
li
nef
ourn
ega
ti
vee
ff
ect
sof
ana
gei
ngp
opu
lat
io
ntot
hee
con
omy
. (
4ma
rks
)

12.
Nya
kioh
asbe
enadv
ert
is
ingh
ergoo
dsinth
en e
wspap
ersf
ort
hel
astt
woy
ear
s.Du
rin
gth
isp
eri
odh
erb
usi
nes
sha
sno
tbeend
oing
wel
l
.Outl
i
nef
ourl
i
mita
ti
onsofa
dve
rti
si
nginNews
paper
. (
4mark
s)

13.
Thef
ol
lo
win
gba
lan
ceswe
ree
xtr
act
edf
romt
heb
ook
sof
Lul
utr
ade
r n31stDe
so c.2017.

F
ixe
das
set
s s
h.300,
000

Cu
rre
nta
sse
ts 123,
700

Cr
edi
to
rs 84,
500

5y
ear
slo
an 125,
000

De
ter
min
eth
eNe
two
rtho
fth
ebu
sin
essa
sat31stDe
c.2017. (
4ma
rks
)

14.
Hig
hli
ghtf
ourc
ir
cums
tan
cesu
nde
rwh
ichab
usi
nes
sor
gan
iza
ti
onma
ych
oos
etod
isp
oseo
fano
ffi
cema
chi
ne.
(4ma
rks
)

15.
Sta
tef
ourme
asu
rest
hatac
heq
ued
rawe
rma
yta
ke,
ino
rde
rtoe
nsu
ret
hatt
hec
heq
uei
sno
tdi
sho
nou
red
. (
4ma
rks
)
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|31
 BUSI
NESSST
UDI
ES
16.
Wri
tet
hed
ocu
men
tth
atr
el
at
est
oea
cho
fth
efo
ll
owi
ngs
tat
eme
ntsi
nIn
ter
nat
io
nal
Tra
de. (
4ma
rks
)

St
ate
men t
s Doc
ument
a)Prep
aredbya nexpor
terg
ivi
ngd et
ail
saboutth
eo r
igi
nofgoods.
b)Ad ocu
me ntoft
it
leofgoodsinint
erna
ti
o na
ltr
ade
c)Showsp r
icescha
rgedascert
if
iedbytheimport
in
gc o
u n
try
’soff
ici
al
s
d)Enabl
etheimp or
tert
oini
tia
teclea
ri
ngo fcus
tomsdutyear
li
erenoug
h
toavoi
dd e
lays.
17.
Outl
i
nefourrea
son st
hatmakeitnece
ssar
yforac o
untr
ytog e
tinvo
lve
dind e
vel
opmen
tpl
ann
ing
. (
4ma
rks
)

18.
Il
lu
str
atewi
thawe
lll
abe
ledd
iag
ramt
hee
ff
ecto
fano
utwa
rdss
hif
tind
ema
ndo
nth
eeq
uil
i
bri
ump
ric
ean
dqu
ant
it
y.

19.
Out
li
nef
ourd
if
fe
ren
cesb
etwe
enp
erf
ectc
omp
eti
ti
ona
ndmo
nop
olyma
rke
tst
ruc
tur
es. (
4ma
rks
)

20.
Sta
tef
ourp
rob
lemst
hatma
ybef
ace
dbye
ntr
epr
ene
urswi
th
outb
usi
nes
spl
an. (
4ma
rks
)

21.
Hig
hli
ghtf
i
ves
tep
sfo
ll
owe
dwh
il
eap
ply
ingf
ora
nin
sur
anc
eco
veri
nge
ner
ali
nsu
ran
ce. (
5ma
rks
)

22.
Count
ryXha
sma n
age
dtof
ul
lyu
ti
li
zei
tsn
atu
ral
res
our
ces
.St
at
efo
urf
act
orst
hatma
yha
vee
nab
ledt
hi
sco
unt
ryt
oful
lyut
il
i
zeh
er
nat
ura
lre
sou
rce
s. (4mar
ks)

23.
Ther
eh a
sbe
enaca
llf
orp
riv
ati
zat
io
nof
Gov
ern
men
town
edb
usi
nes
sesi
nKe
nya
.St
at
efo
urr
eas
onswhyi
thasbe
comen
ece
ssa
ryt
o
pri
vat
iz
egov
ern
mentb
usi
nes
ses. (
4mar
ks)

24.
Mot
orc
ycl
etr
ans
por
tisn
owac
ommo
nfe
atu
rei
nmo
stp
arto
fKe
nya
.Hi
ghl
i
ghtf
ourp
rob
lemsb
ein
gfa
cedb
yth
ismean
so ft
ran
spo
rt.
(4ma
rks)

25.
Sta
tet
hre
ebe
nef
i
tst
hatwo
ulda
ccr
uet
oac
ust
ome
rwh
obo
rro
wsal
oanf
roman
on-
ban
kin
gfi
nan
cia
lin
sti
tu
ti
on. (
3ma
rks
)

GAT ANGA
KENYACERT IFICATEOFSECONDARYEDUCAT I
ON
565/ 2
BUSI NESSST UDI ES
PAPER2
TIME: 2½HOURS
FORMF OUR
1a)Explainfiveposit
ivee f
fect
so fe xt
erna l
bu sinesse nvi
ronme ntonab usi
ness. (
10mark
b)Explainfivepri
n ci
pa l
sthatwo u l
dle adtoe ffect
iveu seofgo v
ernmentresour
ces. (10marks)
2a)Ou t
linefivedif
ferencesbetwe enp arast
atalsa ndc o-opera
tives
. (10marks)
b)Explainfiveli
mitati
o nsofusingc on sume rp ri
cein dex(CPI)tomeasurethelev
e l
ofinfl
ati
oninac oun
try
. (10marks)
3a)Mo sto fthebusinesstodaya retryingtoa d optmo d
e r
nt e
ch nol
ogyinrunningbusin
ess.Discus
sfiv
en e
gati
veimp a
ctstoa busi
nes
s
duetoa dvanc
eme ntintechn ology. (10marks)
b)On1stJ a
n uar
y2017, Kandieh adc ashinh ands hs.3250a ndc as
ha tBankshs136,500. Duri
ngthemonth,t
h efol
lowin
g
tr
ansac ti
onstookp lace.
Jan2: -Ca s
hs al
essh s.42, 630p aidd irecti
n t
ob usi
n e
ssbanka c
count.
3 -
Re cei
vedac he queo fs h
s. 14,100f r
omKi be.
8 -
Bo ughtgo odsfo rshs.26,240a ndp aidbych eque
.
12 -
Ca shsalesshs. 42,450.
14 -
PaidKi okobyc h equshs.23, 750i nfu l
lset
tlementofhisaccountl
ess5%c as
hd i
scount
.
15 -
Paidwa gessh s.24,000c as h.
16 -
Wi thdrewshs. 36,000f romb a nkforo f
fi
ceu se.
18 -
Bo ughtstat
ione rysh s.
550c ash.
20 -
Ch equereceivedf r
o mKi bewa sd i
sho no
u r
ed.
28 -
Paids al
arie
sb yc heq ueshs. 48,600
29 -
Re cei
vedac he quef orshs. 9,500f romOt i
en oaft
erdeduct
ing5%c ashdis
c o
unt.
30 -
All c
a s
hb ankede x
ce ptsha. 5,000
Requir
ed :
Prepar
eat h reecolumnc ashb ooko f
Ka ndied u l
yb al
a nced. (
10mks)
4a)Expl
ainf i
ved i
ff
icult
iesthatab u si
ne s
stha tu sessalespeopl
etop ro
mo tethe
irproduct
sarelike
lytoencou
nter
.( 10marks)
b)Witht hea idofad i
a gr
ame xp l
a i
nt hed i
ff
e renceb etweenmo vementa l
ongdema ndcurveandash i
f
tinad e
ma ndcu r
ve.
(10marks)
5a)Kukuf eedsma nu f
ac t
urer
sh aveb ee nsell
ingt he i
rproductsdire
ctl
ytor e
tai
ler
s.Theyh a
ved ec
idedtodi
str
ibut
eth e
irprod
ucts
th
ro u
ghwh ol
esal
ers.Ex pl
ai
nf ourb ene f
it
sth atth eyma ygetfromt h
isnewa rr
angements. (8marks)
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|32
 BUSI
NESSST
UDI
ES
s
t
b)Thefol
lowingtr
ialba
lan
cewasext
rac
tedfromthebo
oksofF
urahaT
rade
rson31 De c
.2016.
FURAHAT RADERS
TRIALBALANCES
ASAT31STDe c
.2016
Account
s DR. (SHS) CR( SHS)
Sal
es 600,000
Genera
l e
xpenses 60,000
Rentexpense
s 10,000
Commissionrece
ive
d 20,
000
Motorvehi
cles 600,000
Fur
n i
tur
e 240,000
Cash 50,000
Credi
tor
s/debt
ors 120,000 180,
000
Purch
ases 400,000
Ret
u r
nsinwards 20,000
capi
tal 700,
000
1,500,000 1,
500,
000
Addit
iona
linfo
rma t
io
n:
Sto
cko n31stDec.2016wasval
uedatsh
s .
60,000
Requi
red:
-
Pre
p a
re:
i
. T radi
ngp r
ofi
tandl
ossac
countfort
heyea
rendd31stDe
e c
.2016. (
9ma
rks
)

i
i
. Ca
lcu
lat
ea)Re
tur
nonc
api
ta
l. (
1ma
rk)

b)Cur
ren
trat
io. (
2mark
s)
6a)De
scri
befi
vecha
ll
eng
esthatmaybee
xper
ie
ncedbyacou
ntr
ywhos
epopul
at
ioni
smadeu
po fl
argepr
opor
ti
onofy
oungpe
opl
e.
(
10mar
ks)
b)Acountr
yXh asb
eensuf
fe
ri
n gf
romunde
rdev
elo
pment
.Outl
i
nef
i
vefac
tor
stha
tmayh
avehin
d e
redit
sdev
elo
pment
.
(
10mar
ks)

IMENTICENT RALCL UST EREXAMI NAT ION

565/1
BUSINESS
TIME:2H30MI N
1.Sta
tefourty
pesofb usi
n e
ssacti
vit
iescarri
edo uti
nKe n
y a (
4mk
s)
2.Sugges
tfourreas
on sforthei
n cr
easemo t
orcycl
eacci
dentinKenyatoday (4mks)
3.Sta
tefourci
rcumst
a ncesinwh i
chsignl anguagemaybep r
e f
err
ed (
4mk
s)
4.Thefol
lo
wi n
ginfor
ma t
ionwase x
tracte
df r
o mtheb o
okso fRonotr
aders
ra
teofst
o c
kturn-
ove r3times
Mark-
up20%
Openi
ngs t
ockKsh60, 000
Cl
osin
gs t
ockKsh120, 000
Cal
cul
ate (
5mk
s)
a. Co s
tofgoodss old
b. Grossprof
it
c. Purchas
es
d. Sales
5.Sugges
tfourfa
ctorsthatinf
luencethea mounto f
mo neythati
ndi
vidu
alownfortr
ansa
cti
onmoti
ves (4mks)
6.Complet
ethetabl
eg ivenbelo
wb yin di
ca t
ingtheamounttod e
bit
eda ndtheac
countt
obecred
it
ed ( 4mks)
tr
ansacti
on Acc
ountt
ob ede
bit
ed Ac c
o un
ttobe
cr
edit
ed
i
. Sta
tedab u s
inesswithKsh70,000inc a
sh
ii
. Soldgood sonc red
itwort
h
Ksh8,000
i
ii
. Purchase
dGo odsthatar
ewo rt
hyKs h
65,000o ncreditfr
omMu gu
retrader
s
i
v. Wi
th
dre
wKs
h5,
000f
oro
wnu
se

7.
Sta
tefou
rfac
tor
swh i
chmayhi
nde
recon
omicde
vel
opme
nti
nac
oun
try (
4mk
s)
8.
Outl
in
efourneg
ati
veef
fe
ctso
fove
rpo
pula
ti
on (
4mk
s)
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|33
 BUSI
NESSST
UDI
ES
9.Out
li
nefou
rrea
sonswhyth
eg ov
ernmenti
ssu
esli
cens
eb e
for
eab u
sin
essca
nst
arto
per
ati
ons (4mks
)
10.F
oreachoft
hefo
llo
wingt
ransa
cti
onindi
cat
ethesour
ceofdoc
umentfr
omwhi
chthef
oll
owi
ngtra
nsa
cti
onwouldb
erec
ord
ed
(
4mks)
Tr
ansact
ion Sour
ceofdo
cument
i
. Sal
eofgoodsoncred
it
ii
. Goodsret
urne
dbycustomer
i
ii
. Pur
chaseofgood
sonc r
edi
t
i
v. Corr
ect
ionofanunder
char
ge

11.Stat
efou rli
mitat
ionsofu si
ngb i
llboa
rdsasame thodo fa
dvert
is
ingpro
ducts (
4mks)
12.Stat
efou rwa y
sinwh ichthen at
ureofgoodswo ul
din f
lu
encethechoi
ceoftr
ansportmeans
. (4mks)
13.Stat
ea nyf ou
ru s
eso fnati
onalincomestat
is
ti
cs (4mks)
14.Stat
ethre eusesofgene r
alJournal (3mks)
15.Ou t
li
nef ourme t
hodso frepr
oducingdocumentsinano f
fi
ce (
4mks)
16Highli
gh tfouradvant
a g
e sofusi
ngas hortcha
nn e
l o
f di
str
ibut
ion (4mks)
17.Stat
ea nyf ou
re x
ter
n albusi
nessenvir
onmentthatma yle
adtoab usi
nes
ssucces
s (
4mks)
18.Thego vernmentofKe nyama yonlyin
curexpendi
tureaft
ercaref
ulpl
anni
ngbasedonc er
tai
npri
nci
pl
es.
Stat
efourc
anonso
f t
he
gov
e r
nme nto fKenyaexpend i
tu
re (
4mks)
19.Thefoll
o winginf
orma t
ionwa sobtai
nedfromtheb ooksofEast
land
’st
rade
rsasat13stDec2016
shi
ll
i
ngs
Prof
it
s 71,
0000
Drawing s 12,
000
Tot
ala sset
s 300,
000
Tot
alliabil
it
ie
s 70,
000
Re qu i
red
:Ca l
culateEast
landtra
der’
scapi
talasat1stJanua
ry2016
20.Ident
if
yt hetypeofu t
il
itycreat
edfromthefol
lowingacti
vit
ies
ACTIVITY TYPEOFUTIL
ITY
a
. Cr
ush
ings
uga
rca
net
oma
kes
uga
r
b
. T
ran
spo
rti
ngs
uga
rfr
omt
hef
act
oryt
oth
e
c
. s
upe
rma
rke
tke
epi
ngs
uga
rinawa
reh
ous
e
d
. Se
ll
in
gsu
gari
nas
upe
rma
rke
t
21.Kamauaf ormfourleaverwantstos t
artabusi
ness.
Na meanyfoursou
rceswhe
rehecoul
dgetagoodb
usi
nes
side
a(4mk
s)
22.Thebalance
sg i
venbelowwe reext
ractedfromthele
dgeraccountofMaku
tanot
rad
ersa
sat31/06/
2017
Ksh
Capi
tal 190,000
Fur
n i
tur
e 110,000
Upendod i
st
rib
u t
ors 231,000
Pur
c h
ases 285,000
Wages 41,000
Ret
u r
ninwards 5,000
Ret
u r
no ut
wa r
ds 15,000
Rentre
ceive
d 5,000
Requi
red:prep
arethetri
albalan
cetoth ebu s
ines
sasat31/06/2017
23.Outl
inefouradvant
ageso fs
upermarkettotheowner (4mks)
24.Highl
ightf
o u
rbe n
efi
tstoame mb erofs a
ving
sandc r
editc
o-opera
ti
vesoc
iet
y (4mks)
25.Stat
efourfact
orstha
tinfl
u e
ncethel o
ca t
ionofafi
rm (4mks)

IMENT ICENTRALCL USTEREXAMI NATION

565/2
BUSINESSST UDIES
TIME:2½HRS
1a.Expla
infi
vere
asonswh yit
simp ort
anttohavebusine
ssplan (
10mk
s)
b.Expla
inanyfi
veme thod
su se
db ythegovern
me nttosol
vehighrat
eofune
mp l
oyme nt (
10mk
s)
2a.Expla
infi
vewayso fcor
rect
ingab al
anceofpaymentdefi
ci
t (
10mk
s)
b .
Exp l
ai
nfiv
efact
orstoc o
nsiderwhend es
igni
nga noff
ice (10mk
s)
3a.Outli
nefi
vedi
ffe
ren c
esbetweenp e
rfe
ctcomp e
ti
tionandmo nopo
lymar
ket (10mk
s)
b.Expla
inanyfi
venon -
mo ne
taryme a
surest
hatgovernmentmayu s
etocont
rol
infl
ati
on (
10mk
s)
4a.Thefol
lowi
nginformati
onwa sextr
act
edfromtheb ooksofRoti
chtr
ade
rsasat31stDec2015
Sale
s 800,
000
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|34
 BUSI
NESSST
UDI
ES
Pur
chases 500,
000
Ret
urninwa r
ds 90,
000
Ret
urno ut
wa r
ds 26,
000
Cre
dit
ion 150,
000
Rent 60,
000
Deri
vervan 160,
000
Car
ria
g eoutwards 3000
Debt
ion 130,
000
Car
ria
g ei
n wards 40,
000
Bank 50,
000
St
ock(Jan2015) 100,
000
In
tere
stone xpens
es 10,
000
Gener
al e
xpenses 7,
000
St
ock(31stDec2015) 120,
000
Bankoverdraf
t 6,
000
cap
it
al 168,
000

Req
uir
ed
i. Pr epar
eatradi
ngpr
ofi
tandlo
ssa c
countf
ort
hey
earen
ded31stDec2015 (8mks)
s
t
i
i. Pr epar
ebala
nceshe
etasat31 Dec2015 (4mks
)
b
.Ex
pla
inanyf
ou rc
harac
ter
is
ti
csofec
onomicreso
urces (8mks
)
5a
.Wit
ha na
idofadiag
ramexpl
aint
heeff
ectof
ad ecr
eas
einsu
ppl
yofacommodit
yo nequ
il
ib
riu
mpr
ic
ean
dqu
anti
ty
(10mks)
Ex
pla
inanyf
iveess
enti
al
sofgoodware
house (10mks
)

6a
.Explai
nfivepri
n c
ipal
so finsur
ance (
10mk
s)
b.Thefoll
owingt r
ansact
io nrel
atetoBundiwh o
lesaler
sforthemo n
thofJu l
y2012
July
1:bou g
htg oodsonc r
editfroms awadist
ri
buti
onf orKsh76,200,Ndut
aKs h15,600andRi
taKsh40,
000
5:sol
dg oodsonc re
dittok i
ri
mar etai
l
ersKsh40,000, NginaKsh25,000an dHeri
shopKs
h12,000
10:Retur
nedg oodtoNd u t
aKs h4,200andRi t
aKs h10,000
12:Boughtg o
o dsonc r
editfromL anga
tKsh24,600
15:Go odsret
u r
n e
db yNg inaKsh5,000a ndKir
imar et
ail
erKsh3,500
18:So l
dg oodsonc r
edittoNg in
aKs h7,000andKa menetra
dersKsh11,000
22:Goodsr e
turnedbyk ame netr
adersKsh3,000
25:Bo ughtgoodo ncreditfr
omPe n
dotrader
sKs h23,000d avi
dKsh39,000
Re
quire
d
En
tertheabovetransi
ti
onsint hei
rrespect
iv
eb ooksof or
igi
nalent
ry (jou
rnal) (
10mk
s)

KIGUMO
BUSINESSST UDIESPAPERI
565/1
TIME:2HOURS
1.Stat
efou roccu
pa t
ion
st hatap e
rsonma yengageininthesecondaryle
velofpr
oduct
ion. (
4mk s )
2.Thec o
mp u
teri
sfastovert
a k
ingthety p
ewrit
erasequi
pme ntf
o rproduc
ingdocument
sinano f
fi
ce.
Outl
i
nefourr
easonsthat ma y
accountf
o rthi
s. (4mk s)…..
3.Highli
ghtfourci
rcums t
ancesu nderwh i
chpaymentincashma ybep re
fer
redt
op ay
me ntb
yc he
que. (4mk s)
4.Givefourreaso
n st
h a
ta cc
o untf
ort h
en eedforcons
umerp rot
e c
ti
o n
. (4mks
)
5.Highli
ghtfourbenefi
tsofd e
local
izat
ionofbusine
ssente
rpris
esinKe nya
. (
4mk s )
6.Indi
catetheeff
ectofea c
ho fthefoll
owingtra
n s
cti
onsona ss
ets,l
iabi
li
ti
esandcapi
tal
byp ut
ti
nga(+)f
orinc
rea
se,a(-)f
o rde
cre
aseand
(NE)fornoe f
fect
. (4mks)
Tr
a nsa
c t
ion Asset
s Lia
b i
li
ties Capit
al
i
. Paidoutsta
ndingr en
texpense
ssh.5000inc ash.
ii
. Withdrews h.35,000fro
mt hebankforpersonaluse
.
i
ii
. Bou g
htfu r
nit
u r
ewo rt
h70,000o ncr
e di
tfromKa pt
eiTr
aders
.
iv
. Con v
ertedape r
so na
lvehi
cleval
uedatch,200,000int
ob u
sine
ssasset
.

7.Stat
efourdi
ff
ere
ncesbetwee
nap a
rtne
rshi
pa ndsolepro
prie
torfor
mo fbus
ine
ss. (
4mk
s)
8.Lis
tfourwaysi
nwh i
chthegove
rnmentmayc ontr
olinf
la
ti
o n. (
4mk
s)
9.Highl
ightf
ourf
acto
rsthatmayl
eadtolowle
v e
l ofnat
iona
l i
ncome. (
4mk
s)
10.On1st’
May2017Ny a
njaowedNdegwas h.50,000.T
heo wingtr
ansa
cti
onsto
okpla
ced
uri
ngt
hemo
nth
.
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|35
 BUSI
NESSST
UDI
ES
Ma y9:Cred i
tsaletoNy anjas h.40, 000.
Ma y20:Ny anjareturne dg ood swo rths h.3,000t oNd egwa .
Ma y29:Ny anjapa i
ds h .
85, 000b yc h equei nf ul
lse t
tlemen tof hi
sa ccou nt.
Pre p
areNy anja’
sa ccou ntint heb o ok sof Nd egwa . (
4mks)
11.T hetabl
eb e l
ows howst heq ua nti
tyd ema nde do fco mmo dityXp ermo nthb yc o n
su me rsPandQ.
Pri
cep e
ru nit(shs.) Qu anti
tyd ema ndedb yP Quanti
tydemandedbyQ
100 120 200
80 180 250
65 250 350
40 350 500
Stat
ef ourreasonswh yQd ema nd smo reo fc ommo dityXa te veryp r
ic eth anP. (
4mks)
12.Hi ghli
ghtfourb enefi
tso fa dvertisi
n gt oac on s
u me r
. (
4mks)
13.Ou t
li
nefou rme asu
r esth atcanb et akent os afeguardt heo rganization ’
sp roperty. (
4mks)
14.Hi ghli
ghtfourfactorst hatma yl imi td evelopme nto finternati
o naltra de. (
4mks)
15.Hi ghli
ghtfourmi cro-env i
ro nme ntal fact
o rsth atma yp osi
tivel
ya ffectt hep erf
o rman ceo fabusi
n e
ss. (
4mks)
16.St at
efourc ir
cums t
a nce su nderwh ichab u s
in essma yp ref
e rtotra nsp ortgo odsb yair. (
4mks)
17.Hi ghli
ghtfourq ual
itiesn eededf o rac ommo d i
tytof uncti
ona smo ne y. (
4mks)
18.St at
efourc ir
cumn stan cesu nde rwh ichc apitalofab u si
nes sma yc h ange . (
4mks
)
19.Ou t
li
nefou rfa
c t
orst hatar eli
k elytoc ausead efi
c i
tinb alanceo f pay men ts
. (
4mks)
20.Hi ghli
ghtfourrea s
o nswh yitisn ece ss
ar ytoh a v
ei ntermed ia
riesi nt hed is
tri
b uti
onc h ai
n. (
4mks)
21.St at
efourwa ysinwh ichc o nsume rswo u ldsu f
ferif t
h er
ewe renowa reho usi
n gfacil
iti
e s
. (
4mks)
22.Hi ghli
ghtfourrea s
o nst hatma yma kep lannin gd i
ffi
cu l
tind evelop i
n gc ou ntr
ies. (
4mks)
23.J. Chomb ah adthef ollowin ga ssetsa ndl iabil
it
ieso n1st’Ja nuary2016.
Sh s .
Mo t
orVehic l
es 400, 000
De btor
s 36, 000
Ba nk
16,500
Sto c
k 52,000
Ba nkLoan 38, 500
Fort heyearen ded31stDe cemb er2016, t
h efollowin ginforma ti
onwa sa v
a i
lable;
(i
)Add i
ti
o n
alca pi
talshs.5000.
(i
)Drawi ngs
;cashshs20, 000, stock15, 000.
(i
i
i)Ne tlos
ss hs.68,480.
Ca l
c ul
at
ec apit
alo n31st’ De cemb er2016. (
4mks)
24.Ou t
li
nefou rchall
eng est hatma yf ac eac oun t
ryth atisma d eupo fal argep ropo r
ti
o no fyoungp e
ople. (
4mks)
25.St at
efourr eas
o nstha tjustif
yt hep ro vi
sio no fessen t
ialservicesb yt hes tat
ei nste
a do fleav
ingthemtothepri
vat
ese
cto
r.
(
4mks)
KIGUMOMOCK
FORM4BUSI NESSST UDI ES
PAPER2
565/2
TI
ME:2½HRS
1.
a)Exp l
ainfi
vep ri
nciple
so fag o odt axs ystem. (
10mks)
b)Wi ththeaido fad i
agra m, explaint hec ircularf l
owo fincomei nat wos ectore conomy . (
10mks)
2.
a)Exp l
ainfi
veme a
su r
est hatth eg ove rnme n tof Ken yaca nemp l
oyt or ed ucet heamo u nto fmoneyincirc
ulat
ion
.( 10mks)
b)Exp l
ainfi
vewa ysth r
o ug hwh i
cht heg over nme ntma yc reatea ne nab l
inge nvi
ro nmen t
. (
10mks)
3.
a)Exp l
ainfi
veb enefi
tsth atKa ma uwo u l
dg e tbyj oiningKo roch oSACCO. (
10mks)
b)Exp l
ainfi
ver eas
o nswh yb usinessme no bs er
vee thicalp r
actice. (
10mks)
4.
a)Exp l
ainfi
vefa ct
orstha ton ewo u ldc o nsi
d erwh enc hoosingame t
h odf orp rodu ctpromo t
ion. (
10mks)
b)OnJ anua
ry2019, Mb o goT rade r
sh ads hs40, 000i nc asha ndab an ko verdraftofsh s16,200.Du ri
ngthemo nt
hoff
ol
lowi
ng
tr
an sact
ionstookp lace.
Jan uar
y
3rd:Boughtg oodsinc ashwo rths hs 17,500.
4th:Recei
ve dfromT emb oac hequ eo fshs14, 250a fterall
owi ng5%c ashd i
sc ount.
8th:Ma ndo,ad ebtors et
tledh isa cco unto f s
h s17,000b yac hequeo fshs 16,500.
10th:Wi thd r
ews hs7, 200f romt heb ankf orp ersonal use.

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|36
 BUSI
NESSST
UDI
ES
t
h
14 :Sa l
esa mountedt osh s
22,450i ncas
h .
th
18 :Pa i
dSi mbatrad er
ssh s28,
500i ncashinful
lset
tle
me ntofth
eiracc
o untl
ess5%cas
hd i
sco
unt.
20th:Wi t
hdrews hs4,000f romtheb ankf
orb usi
nes
su se.
22nd:Ku nguru,ade btor
, s
e t
tle
dh eracco
un tofs
hs40,000b ychequele
ss1.5%c as
hd i
sco
unt.
26th:Pa i
dwa ge
ss hs12,000i nc a
sh.
Rec
eiv
e d;
Pr
epar
ead ul
yb al
ancedt hreecolumnc ashboo
k . (10mks
)
a)
Inthel a
stoney e
ara pp l
esup pl
yinMu rang’
ah asbee
no nrise
.Ex pl
ainfi
vefacto
rstha
twoul
dhavele
adtot
hi
str
end
.(10mks)
b)
Explainfi
vedemerit
so ff
reetrade. (
10mk s
)
5.
a)
Explainfi
vebenefi
tso fusingelect
ronicfi
li
ngs y
ste
m. (
10mk s
)
b)
Thef ol
lowinginf
orma tio
nr ela
testoKiprut
oEn t
erpr
ise
sa sat31stDecember2017.
Sh
Mo torvehi
cle 146,500
Officeequi
pme nt
’s 120,000
Dra wings 12,000
Cap i
tal 200,000
Stock 68,000
Netp rof
it 82,000
Ban kloan 80,000
Deb tor
s 86,000
Cas hinhand 6,000
Cred i
tor
s 50,000
Ban koverdra
ft26,500

Requ
ire
d
(
i)
PrepareKipr
uto’
sba
lan
ces
hee
t (
6mk
s)
(
ii
)Ca lcula
te
a)
Wo rki
ngc api
ta
l (
2mk
s)
b)
Borrowe dcap
it
al (
1mk
)
c)
Cu r
rentrat
io (
1mk
)

MURANG’ ASOUT HSUB- COUNT Y

465/1
BUSINESSST UDIES
PAPER1
FORM4
2HOURS
1.Id
enti
fytheb usines
sa ct
ivityforthefoll
owingd escr
ipt
ions
. (
4ma
rks
)
(a
)I nvolvescon v
ersi
o no frawma t
eri
alsintomo r
eu se
fulprod
uc t
s
(b
)Pr oc es
so fmo vi
ngg oodsan dservi
cesfromt heprodu
certothec onsumer
(c
)I nvolvesh umana ct
ss u c
ha sentert
aining,act
inghair
dress
ing
2.Obta
iningofg oodsfromt he i
rnaturalenvir
on mentStat
efourci
rcums t
a nc
esunderwhi
chacheq
u emayb
edi
sho
nore
d.
(
4mark
s)
3.Thefol
lowingin f
ormati
o nr el
atestoKy al
o’strade
rsasat31stDecemb er2010.
Deta
ils Sh s
.
Tot
aldrawin gs 400,000
Addedinvestme n
ts 800,000
Capi
tal(31stDecemb er2010) 7,000,000
Prof
it 3,100,000
Calc
ulat
eKy al
o ’
sinit
ialcapit
a l
. (
4ma
rks
)
4.Namet h
ed o cumentsdes cr
ibedb ythes t
ateme n
tsgive
nb el
owa su se
di nin
ter
nat
ional
tra
de. (
4mark
s)
(a
)Re questsforpayme ntb e
foreg o
o dsared el
iv
ered
(b
)Sh owso wn er
shipo rtit
leofg oodsimp ort
ed
(c
)Sh owst hecountryo fma nufact
ureo fgoods
(d
)Sh owst hetra
nspo r
tationc har
gesforg oods
5.St
atefourch ar
acter
ist
icso fecon omicresources. (
4ma
rks
)
6.Highl
i
g htfourdisadva
n t
a gesof l
ongc hainof di
str
ibut
iontoab uyer. (
4ma
rks
)
7.Outl
inefourb enef
it
stha two ul
da ccruetoab u s
iness
manwh ou sesli
nerrathe
rth
a natr
ampst
eamer. (
4mark
s)

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|37
 BUSI
NESSST
UDI
ES
8.Sta
tefourser
viceso ff
eredbyc oo
pe r
ati
vebanko fKenyatoitsmembe r
s.
9.Sta
tefourbenefi
tso fSACCOst oitsmemb er
s. (
4ma
rks
)
10.Thefol
lowingtransact
ionstookplaceinthebusi
n es
so fLuckyThreeCo.Ltd.I
nthef
irs
twe
eko
fJa
nua
ry2010.
Jan1:Ba l
anceb /dsh s.
24,000c as
hinh andandshs .
14,000atba n
k.
Jan2:Receiv
edac hequefromth esal
eofgo o
dss hs
.20,000
Jan3:Soldano ldmo torvehic
le,re
ceiv
ingshs.70,
000c ash.
Jan4:Withdrewf romb ankshs.
3,000forpersonaluse.
Jan5:Transf
erreda l
lcashtotheb a
nk,leav
ingab al
an c
eo fshs
.2,
000o n
ly.
Ent
erthea b
ovet r
an sac
tionsinatwoc ol
umnc ashb ookandb al
anceit
. (4ma
rks
)
11.Highl
ig
h tf
ourwa ysinwh i
chano rgani
zat
ion’
spropertyaresaf
eguardedandcont
rol
l
ed. (4ma
rks
)
12.Thefol
lowinginf
o rmati
o nwasextrac
tedfr
o mtheb ooksof Mi
raTraders.
Sh s.
Op eni
n gstock 160,000
Closings t
ock 200,000
Ra t
eo fstockturnove
r 3t i
mes
Ma rku p 20%

Requi
red
(i
)Gr osspr
o fi
t (2mar
ks)
(i
i)Sal
es (2mar
ks)
13.Highl
ightf
ou rme a
s ure
sthatag o
v e
rnme ntmaytaketoredu cethemo r
tal
it
yrat
ei nacount
ry. (
4ma r
ks)
14.Highl
ightf
ou rri
skso wnersofasu pe
rma r
ketmayins u
reag ains
t. (4mar
ks)
15.Highl
ightf
ou rwa y
si nwhichconsume rsmayprote
c tt
h e
ms elve
sa gai
nstexp
loi
tat
ionbytr
ader
s. (
4ma r
ks)
16.Outl
inefourwa ysinwh i
chtheg over
n mentexpe
nditurema ystabi
li
zetheeconomyo faco
untr
y. (
4ma r
ks)
17.Iden
ti
fythetyp e
so fwh ol
esal
ersdescri
bedinthest
a te
me ntsgivenbel
ow. (4mar
ks)
(a)Awh ol
e s
a l
erwh otra
d e
sinawi dev a
rie
tyofhuma nme d i
cin
e .
(b)Awh ol
e s
a l
erwh otra
d e
sinb eansonly
(c)Awh ol
e s
a l
erwh obuysorangesfromf a
rmersi
nr uralareasandsell
sthemtoo t
h e
rwhol
esal
ersi
nur
banare
as
(d)Awh ol
e s
a l
erwh osuppli
esgo o
dst oweste
rnpa rt
sofKe nya
18.Highl
ightt
h evari
ou stype
so faf
tersal
es e
rvi
cesthatcanb eu se
df o
rproductpr
o moti
on. (
4ma r
ks)
19.Curr
entlyt
h erehasb ee
nag eneralri
seinp r
ic
esofc onsume rgoodsandservi
cesinKenya
.Outl
in
ef o
urn
egat
iv
eeff
ect
soft
hi
str
end.
(
4ma r
ks)
20.Thefol
lowi
n gledgera c
countsappearedinthele
dgerb ooko fHod a
riLt
d . (4mar
ks)

Dr. Purcha
sesA/
C Cr
.
2/1/05 Cre
dit
ors 50,
000
10/1/05 Ba
nk 5,000

Dr
.
Ban
kA/C Cr
.
4/
1/05 Ca
pit
al45,
000 8/1/
05 Cr
edi
to
rs 10,000
10/
1/05 Pur
cha
ses 5,
000

Dr
. Cr
edi
to
rsA/C Cr
.
8/
1/05 Ba
nk 10,
000 2/1/
05 Pu
rch
ase
s 50,
000

Fr
omt heabovele
dgeraccount
s,st
at
ethetr
ansa
cti
on swhic
ht ookpla
ceo nt
h ef
oll
owi
ngda
tes
. (
4ma
rks
)
(
a)2/ 1/05
(
b)4/ 1/05
(
c)8/ 1/05
(
d)10/ 1/05
21.Hi
gh l
ightf
ourwaysinwh i
chawa r
ehous
eisuse
fultoama nufa
cture
r. (
4ma
rks
)
22.Out
linefou
rme as
uresthecent
ral
bankmayputinplacetoreduc
ethea mountofmone
yinc
irc
ula
ti
on. (
4mark
s)
23.Out
linefou
rcirc
umstancesunde
rwh i
chcas
hwitho r
d e
rma ybeu s
ed. (
4ma
rks
)
24.St
atefourwaysthr
oughwh i
chthegover
nmentcanen s
urecle
ane nv
iro
n men
t. (
4ma
rks
)
25.Hi
gh l
ightf
ourchar
acte
ri
s t
ic
sofanoli
gopol
ymarketstr
uctu
re. (4ma
rks)

MURANG’ASOUT
HSUB-
COUNT
Y465/
2
BUSINESSST
UDI
ES
PAPER2
2HOURS
1.
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|38
 BUSI
NESSST
UDI
ES
(a
)Ka r
imi s
tarte
dac anteentwoy e
arsago ,butfai
ledon eyearlat
er.Gi vefi
vereas
on swh i
chc ou
ldhavecause
dt h
is.(10mks)
(b
)Ex pl
ainfi
v ecir
cumstancesunderwh i
chac ount
ryma yrestri
ctinternati
onalt
rade. (10mks)
2.
(a
)Ex pl
ainfi
v ewaysofma kingfa
cetof a
c ecommu ni
cati
one f
fecti
ve. (
10mk s
)
(b
)Ex pl
ainfi
v eusesofnati
o n
alinc
o mestatis
tic
stoac o unt
ry. (
10mk s
)
3.
(a
)Ka r
anjao wnsab aker
yinKi t
al
eto wn.Ex p
lai
nfivewa yswh yh eca rr
iedoutdi
visi
o noflabori
ntheproces
so fbak
ingbr
eadinh
is
fa
ctor
y. (
10mk s
)
(b
)T hefol
lowingtria
lb a
lancewase xt
ract
e dfro
mt heb ookso fKi
su muAu t
oSp a
resa sat31stDece
mb e
r2016.
Ki s
umuAu t
oSp ar
es
Tri
al Balanc
e
Asa t31stDe cember2016
Detai
ls Dr. Cr.
Sh s
. Sh s
.
Capit
a l 400,000
Purchases/sales 200,000 600,000
Debtors/c r
edit
ors 20,000 60,000
Returns 25,000 15,000
Disc
o unts 6,000 8,000
Carr
iageinwards 6,500
Carr
iageo ut
wards 15,000
Sala
ries 10,000
Stock(1.1.
16) 18,000
Mo t
orv ehi
cle
s 400,000
Furni
ture 150,000
Rent(hou s
e) 49,000
Commi ssio
na l
lowed 50,000
Adverti
si
n g 43,500
Commi ssio
nrec e
ived 10,000
1,093,000 1,093,000
Addit
ionalInfo
rmation
Stoc
ko n31stDe ce
mb er2016Sh s.20,000
Requi
red
Pre
p a
retradi
n gandlossaccountforthey ea
ren ded31stDe ce
mb er2016. (10mks)
4.
(a
)Gi v
efived i
ff
erencesbetweenap r
ivat
ec omp anyandap ub l
icco r
p or
a t
ion. (10mks)
(b
)Ma kueni Countyhaslocat
edfrui
tp r
oce ss
ingfactor
ya tKalamba .Explai
nfiv
efactorsthatwerecon
sider
edinlocat
ingt
hefi
rm.
(10mk s)
5.
(a
)Ex pl
ainfi
v ereas
onsforwh ic
htradero bse
rveethicalpra
cticeinp roductpr
omo t
ion . (10mks)
(b
)T hefol
lowingb ooksofo r
igi
nalentr
yr el
atetoHu rumaT r
a der
sf orthemo nt
ho fAp r
il2017.
Purchas
esJ ourna
l
Date De t
ail
s Amo un t
2017 Shs.
Apri
l5 Jahazit
raders 340,000
16 Samb atr
a der
s 220,000
30 Total 560,000

Sa
lesJ
ourna
l
Date Det
ail
s Amount
2017 Shs.
Apri
l2 Har
ic
owhole
sal
er
s 849,
000
8 Nj
amaat
rad
ers 1,
250,000
30 To
tal 2,
099,000

Sal
esRet
urnJ
our
nal
Date De
tai
l
s Amoun
t
2017 Shs
.
Apri
l15 Ha
ri
cowhole
sal
er
s 9,
500
20 Nj
amaat
rad
ers 25,
000

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|39
 BUSI
NESSST
UDI
ES
30 T
ota
l 34,
500

Purc
has
esr
etu
rnsj
our
nal
Date De
tai
l
s Amoun
t
2017 Shs
.
Apri
l12 Ja
h a
zit
rad
ers 5,
000
24 Sambat
rader
s 1,
500
30 Tot
al 6,
500

Requir
ed
Postth
ea bo
veinf
ormati
ontot
herel
evantl
edg
eracc
oun
ts. (
10mk
s)
6.
(a
)Ex pl
ai
nfiv
ereaso
nswh yt
hegover
nmentmayfi
ndi
tnece
ssa
ryt
oimpo
seta
x. (
10mk
s)
Usi
n gawelll
abel
eddia
gram,i
l
lus
tr
atetheef
fe
ctso
fani
ncre
asei
nsupp
lyone
quil
i
bri
ump
ric
ean
dqu
ant
it
y.

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|40
 BUSI
NESSST
UDI
ES

KIENISUB-COUNT Y
BUSINESSST UDIES
PAPER1
TI
ME:2HOURS
ANSWERAL LQUESTIONS
1.
Ide
ntif
ythreebu
s i
nessac
ti
vit
ie
sca
rri
edo
uti
nNy
eri
Cou
nty
. (
3Mk
s)
2.
Ide
nti
f
yth
ema
chi
neu
sedf
ort
hef
ol
lo
win
gpu
rpo
se. (
4Ma
rks
)
St
at
ement Ma
chi
ne
a) Des
troyunwant
eddocument
s
b) Pr
intpos
tagest
ampimpre
ssi
onsonenv
elo
pes
c) Pr
inti
ngandrec
ordi
ngcashsca
ler
ece
ipt
s
d) Pr
inti
ngdocument
stog
ether

3.
Sta
teau
nito
fca
rri
agef
ore
acho
fth
efo
ll
owi
ngmo
deso
ftr
ans
por
t. (
3ma
rks
)
Mod
e Un
ito
fca
rri
age
a
) Po r
ter
age
b) Ai
r
c
) Se a
4.
Sta
tef
ourd
isa
dvan
tage
sofad
ver
ti
si
ngt
hro
ught
het
el
evi
si
on. (
4Ma
rks
)
5.
Hig
hli
ghtf
ourf
act
orst
hatma
yco
ntr
ibu
tet
ohi
ghe
rle
vel
sof
nat
io
nal
inc
omei
nac
oun
ty. (
4Ma
rks
)
6.
Sta
tef
ourf
unc
ti
onso
fth
ece
ntr
alb
ank
. (
4Ma
rks
)
7.
Sta
tet
hre
eme
tho
dsu
sedt
ore
str
ic
ttr
adeb
etwe
enc
oun
tri
es (
3Ma
rks
)
8.
Mar
yco
mpl
et
edf
ormf
ourl
asty
eara
ndd
eci
dedt
ost
artas
imp
les
hop
.Gi
vef
oura
dva
nta
gesMa
ryg
etsf
romh
erbus
ine
ss.
(
4mar
ks)
9.
Out
l
inef
ourb
arr
ie
rst
oef
fe
cti
vec
ommu
nic
ati
on. (
4Ma
rks
)
10.T
hed
iag
rambel
ows
howsth
ede
man
dfo
rac
ommo
dit
yAo
verag
ive
npe
ri
odo
fti
me.
Giv
efo
urc
aus
esf
orc
han
geo
fde
man
dcu
rve
fr
omDDtoD,D1.(
4Mark
s)
X D1 S
D

D1

D
S

11.Cl
ass
if
ythef
oll
owingecon
omicres
our
ces. (4ma
rks
)
Res
ourc
e Cl
ass
if
ic
ati
on
a) Oil
b) Shipcapt
ai
n
c) Hydroel
ect
ri
cpowerpl
ant
d) Stand
ardgauger
ai
lway

12.Ma
tcht
hef
ol
lo
win
gty
peso
fun
emp
loy
men
twi
tht
hec
orr
ects
tat
eme
nt:r
esi
dua
l,f
ri
ct
io
nal
,st
ruc
tur
al
,op
en,
dis
gui
sed
.
(
4Ma
rks
)

St
at
emen
t T
ypeo
fun
emp
loy
men
t
(
a)Wi t
hdra
walofwork
erdo
esn
ota
ff
ecto
utp
ut
(
b)Aris
esoutofphy
sic
al
c
hall
enge
s/di
sab
il
it
ie
s
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|41
 BUSI
NESSST
UDI
ES
(
c)Ig
noranc
eof ex
ist
enc
eofaj
obopp
ort
uni
ty
(
d)Peopl
echoo
s enott
oworkd
esp
it
e
ava
il
abi
li
tyofjo
bs

13.I
den
ti
fyf
ours
our
ceso
ffi
nan
cef
orag
ove
rnme
nt. (
4Ma
rks
)
14.Na
mef
oure
sse
nti
al
sofawa
reh
ous
e. (
4Ma
rks
)
15.Hi
ghl
i
ghtf
oura
dva
nta
geso
fdi
vi
si
ono
fla
bou
ran
dsp
eci
al
is
ati
on. (
4Ma
rks
)
16.Ou
tl
in
efo
urp
rin
cip
leso
fac
o-o
per
ati
ves
oci
et
y. (
4Ma
rks
)
17.
18.T
hef
ol
lo
win
gas
set
san
dli
abi
l
it
ie
sbe
lon
gtoCh
akat
rad
e n1stMa
ro rch2016.
Ca
pit
al 120,
000

Ma
chi
ner
y 80,
000

Cr
edi
to
rs 10,
000

De
bto
rs 20,
000

St
ock 25,
000

Bank 5,000
On2ndMar
chthef
oll
owi
ngt
ran
sact
ionsto
okpl
ace
(i
)Purch
asego
odswort
hk s
h.15,
000oncr
edi
t
(i
i)Recei
vedac h equeofksh.10,000f r
omad ebt
or
Requi
red:
Pre
pareaba l
ancesheeta sa t2ndMarch2016a f
tert
hetra
nsact
ion
stookpla
ce. (7Ma rk
s)
18.St a
tefournegati
v ee f
fectsoninf
lati
ono ntheeconomy. (4Ma rk
s)
19.Id
enti
fyfourfa
cto r
st hatma yatt
ractfi
rmst oanare
a. (4Marks
)
20.Highl
ig
h tf
ourcircums tancesunderwh ic
ha ninsur
ancecompanymayre-
ins
ureit
sel
f.(4Marks)
21.St
atefourfe
atureso fa noligo
polyma r
ket. (
4Ma rks)
22.Id
enti
fyfourfa
cto r
st hatd et
ermineamo untofmoneyheldbyanind
ivi
dual
fortr
ansac
ti
o nmoti
ve. ( 4Ma
rks
)
23.Menti
onf ou
rg oalsfore conomicd e
vel
o pme n
t. (
4Ma r
ks)
24.St
atefourreas
on swh ytheg ov
ernmentfinditnec
essar
ytoprot
ectcon
sumersf
romt ra
d er
s. (4Ma
rks
)
25.St
atefourfa
ctorsth atinfl
uenceentre
preneu r
shi
ppract
ic
esinKenya
. (4Ma rk
s)

KIENISUB-COUNT Y
BUSINESSST UDIES
PAPER2
TIME:2½HOURS
Answerfiv
eq ue
sti
ons
1.(a)Expl
ainfi
vefu
ncti
onsoftheCentralBanko fKe
nya. (
10Ma r
ks)
(b)Usi
ngawe lll
abel
le
dd i
agr
ame xplai
nt hecir
cul
arfl
owofi
nco
meinatwos e
cto
recon
omy . (10Ma
rks
)
2.(a)Expl
ainfo
urdisa
dvant
agesofpipel
inetranspor
t. (8Marks
)
b)Thefoll
owingtr
ia
lbala
ncewa sext
ractedfromthebook
sofMwan
anch
i l
i
mi t
eda t31stDe
sa c
emb
er2010.
Mwa nanch
i l
imited
Tri
a l
balance
Asat31stDecemb er2010
Account Dr Cr
purchas
es 140,000
advert
is
ing 8,
000
St
o ck1/1/2010 25,000
sa
les 190,
000
Fi
xeda ss
ets 164,000
cr
e d
itor
s 22,
200
debt
o r
s 21,000
sa
larie
s 28,000
Banko ve
rdraf
t 20,
200
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|42
 BUSI
NESSST
UDI
ES
Ret
u r
no u
twar
ds 4,
800
Cas
hi nhand 5,
000
Rentexpe
nses 20,
800
Ret
u r
ninwar
ds 3,
000
ca
pital 177,
600

414,
800 414,
800
Pre
pare:
(
a)Tradi
ng,pr
o f
ita ndlossa ccountfo rthep eri
ode nded31stDe c2010. (7Mar
ks)
st
(
b)Balanc
eshee tasa t31 De c2010 . (5Mar
ks)
3(a
)T hef
oll
owingtransa c
tionto okp l
acea tMwa nzowh oles
alersdurin
gt hemo nt
ho fMay2019
May1:Bal
ancec ashk sh.2,900, ban kk s
h.65, 400.
May2:Mwa ngi paidh i
sacc ounto fksh .
12, 000b ych e
qu eles
s2.5%c ashdis
co un
t.
May3:ApidMu k orii
n ve
stme n
ts h
. 10,000b ychequeless5%c ashd i
scount
.
May8:Wi t
hdrewk sh. 10,
000c ashf romb an kforbusinessuse.
May11:Kama us ett
ledh i
sa ccounto fk s
h. 27,300b ycheq uehavin
gd educt
ed2. 5%c a
shdi
sco
unt.
May15:Paidwa gek sh.9,000c as
h .
May20:Ch e
gep a i
dh isacco untksh.4, 000i nc ashdeduc t
ing2.5%c a
shd i
scount.
May25:Bo ug
h tfurnit
u r
e’sa ndfit
ti
n gsa ndp ai
db ych e
qu eksh25,000.
May28:Cashs alek s
h .
25,000.
May29:De po
sitedk sh.25,000f r
omt heca shtil
li
n t
otheb usines
sb anka/c.
May30:PaidWa gurak s
h. 6,000s hi ncashl esscashdiscountof5%.
May31:PaidKa i
ruk sh.41, 800b yc hequeh av
ingd e
d uc
ted5%c ashdiscou
nt.
Pre
pareaT hr
eecolumnc ashbo okd ull
yb alanced .
(b
)Ex p
lai
nfiv
ec i
rcums tancestha tmayma keab ankrej
ectac heque. (10Mar
ks)
4.(a
)Ou t
li
nefiv
ed i
fferencesbe tweend i
r ectprodu ct
ionandin di
rectproduct
ion. (
10Marks
)
(
b)Ex p
lai
nfiv
ewa yst hroughwh ichinsu r
ancef i
rmsc ontr
ibutetoe c
on o
mi cdevel
opmentofac
ountr
y.(10Mar
ks)
5.(a
)Ex p
lai
nfiv
eb enefit
so fah ighp opulati
ont oac oun t
ry. (10Mar
ks)
(
b)Ou t
li
nefiv
ed i
fferencesbe tweenas oleprop r
iet
orshipandap u bl
i
climitedcompany. (
10Marks
)
6.
(a)Expl
ainfi
vebene f
itstoab u sine
ssth athasag oodb usi
nessp l
an. (
10Marks
)
(b)Expl
ainfi
vefact
o rsthatma yl ea
dt oab al
an ceofpayme ntdisequi
li
bri
um. (
10Marks
)

KAHURO/ MUGOI RIZ ONE

FORMF OURBUSI NESS
PAPER1
1. Sta
tetheter
mg i
v e
ntoeachofthefollo
wingdisci
pl
ine. (4mks)
a) Stu
d yofhowma nstr
ive
stosati
sf
yh isunli
mit
edwa nte
dusingl
imi
tedres
ourc
es.
b) Stu
d yoft
radean daidst
otrade.
c) Stu
d yofact
iv
iti
e stha
tarecar
rie
do utinano f
fi
ce.
d) Stu
d yoft
hep rocessofi
denti
f
yingbu si
nessoppor
tuni
tyandacqui
ri
ngres
ource
snece
ssar
ytost
artandr
unabu s
ine
ss.
2. Sta
tethebookso fori
ginal
entr
yintowh ic
he a
cho fth
efol
lowin
gtrans
act
ionwoul
dbeente
red
,st
a t
in
gtheso
urcedocume
ntsu
sedi
n
eac
hc ase
. (4mks)
TRANSACT ION SOURCEDOCUMENT BOOKSOFORI GI
NALENT RY
a) Wh ereg oodsar
esoldonc redi
t
b) Wh ereg oodsar
esoldonc ash
c) Wh ereg oodssol
donc r
editare
ret
urne d
d) Wh enwer e
tur
ng oodspr
ev i
ousl
y
bough toncredi
ttosuppl
ier.

3. Ou
tl
inefourreas
o nswhya nin
creasei
np e
rcapi
tal
incomema ynotne
cessa
ril
ylea
dt oari
sei
nthest
andar
dsofl
iv
ingofthec
it
iz
ens
.
(4mks)
4. Hi
ghl
ightf
ou rwaysinwhichrunningpubl
iccor
porat
io
nma ybeimprov
ed. (4mks
)
5. Hi
ghl
ightf
ou rmainfunct
ionsofnon-ba
nkfin
anci
alins
ti
tu
tions. (4mks
)
6. Ment
ionfourbenef
itsac
cruedtotheKenyanEconomyasaresul
tofi
ntr
oducti
ono ft
h eSt
and
ardGaugeRa
il
way.(
S.G.
R.)
7. Ou
tl
inefourfeat
uresofi
nd i
rec
tp r
oduct
ion. (4mks
)
8. Completethefol
lo
wingtablebyindi
cat
ingt
hea c
counttobedebi
te
da ndtheonetobecre
dit
ed.
Tr
ansacti
on A/ctobedebite
d A/ct
obecredi
te
d
a) Staredab usi
nessbydeposit
in
gcashint
othebusin
e s
s
b
a nkaccount
.
b) Pu rch
aseo fgo
od soncredi
t
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|43
 BUSI
NESSST
UDI
ES
c
) So
ldgood
soncr
edi
t
d
) Boug
htanewmot
orve
hic
leb
ych
equ
e

9. Gi
vef
ourwayi
nwh i
chgover
nmentmaypar
ti
ci
patei
ntheo
pera
ti
onoft
h es
tat
eco
rpor
ati
on. (
4mk
s)
10.Hi
ghl
i
ghtfo
urway
so fus
ingEl
ect
roni
cfi
l
ingsys
tem. (
4mk
s)
11.Th
efol
l
owingi
nf
ormati
onrel
at
edtoKar
ibut
rade
rsoft
heyea
rendd31stDe
e ce
mber

Det
ail
s shs
Fi
xedasse
ts 1.
840,000
Cur
rentass
ets 400,
000
6y
rb a
n kl
oan 600,
000
Cur
rentli
abi
li
ti
es 150,
000

Usi
ngap r
o pe
rlyd r
a wnb alanc esh eetd ete
rmin et heo wn er’
scapit
al. (
4mk s
)
12.Kass
imRe tail
erss e
llsgo odsa tama rkupo f20%. Stocko nJ a
n uay1st,
r 2015wa sKsh40,000a ndon31stdec.2015stoc
kwa swo r
th
Ksh600,000. Th erateo fstoc kturn overwa s5t ime s
.
Requi
red;p r
epareKa ssimRe t
a i
ler
sT r
ad i
n gAc co untforth eyearended31stDe c2015.
13.Highl
ightthreereaso nswh yp eo p
lek ee pmo ne yin st
eado fot
h e
rassets. (
3mk s
)
14.Sta
tefourfeatureso fap er
fectlyco mp etiti
vema rket. (
4mk s
)
15.Highr
iseEn t
erprise
sa cq ui
redab uildingv al
ue da tshs .1,000,000o n3rdFebr
u ar
y2010. T
heb ui
ld
ingwa si
n su
redwitht
woi nsu
rance
companies,Ma disona ndAPAf ors hs. 600,000a n dshs .400,000respecti
vel
y.InJ ul
y2010,fi
redamag e
dth ebuil
di
ng,causi
ng
hi
ghris
eEn terpri
setos u f
feral osso f20%o ft
h eb ui
l
d i
n gv a
lue.Determinet
hec ontri
but
ionmadeb yMa di
sonan dAPAtocoverthe
l
oss.
16.Sta
teon ecir
cu ms t
an c
eu nd erwh iche a chof t
h ef oll
owin gsou r
cedo cument
sma yb eiss
uedbythetrader
. ( 4mk s
)
a) Invoi
ce
b) Debi
tn ote
c) Quotat
ion
d) Credi
tno t
e.
17.Highl
ightfourme asu r
est hattheg o vernme ntma ytaket or e
ducethemo r
tal
i
tyrateinac o
untry
. (
4mk s
)
18.Outl
inefourch aract
e r
isti
cso fb as
ich u ma nwa n ts. (
4mk s
)
19.Jumao per
a t
esa ne l
e c
tronicb usinessinT hi
kat o wn .Ou t
linefourmethodshema yu setodet
erminepri
cesforhisgoodsoth
erthanthe
fo
rcesofde man dan dsu ppl
y . (
4mk s
)
20.Menti
o npo s
siblecon sequenc esth atma ya r
ised uetop oo rar
rangeme ntofgoodsinawa reh
ouse. (
4mk s
.)
21.Highl
ightfourfactorsthatmu stbec onsidere
db eforein curr
ingp u
bli
ce xpend
itur
e. (4mks)
22.Afir
mwi sh e
st ointroducean ewp rodu cti
n t
ot h ema rketo ut
li
nefourf a
ctor
sthats h
ouldbeconsid
eredincho o
singanappropr
ia
te
mediumf orpromo ti
o n. (
4mk s
)
23.Thefol
lowingc ashtr a
n sac
tiont oo kp l
a c
ei ntheb usi
n esso fFat
umad u r
ingthefi
rstweekofJanuar
y2010
Januar
y 1. Balancesb roug htd ownc ashs h12, 000Ba nksh35,000
2. Soldfurnit
u reforc ashs hs
.8, 000
3. Cashs ale
ss h ,10,000p aidd i
re ctl
ytot heb ank
4. Fat
u mat ookc ashs h .1,500f o rp er
son aluse.
5. Bou ghtgoo dswo rt
hs h.15,000p ayingp art
lybyc hequessh.10,000andtheBa l
ancesi
nc ash.
Pre
pareat wo-c olumnc a s
hb o ok (4mks)

DR TWO–COL
UMNCASHBOOK CR
Da
te De
tai
l
s Ca
sh Ba
nk Dat
e De
tai
l
s Ca
sh b
ank

24.Gi
vefou
rreas
onswhyonewoul
dpr
efe
ralet
te
rtoapho
netosen
dame ssag
e. (
4mks)
25.Ou
tli
nefou
rdisa
dva
nta
gest
hatama
nufac
tur
erwoul
dsuf
fe
rif
wh ol
esa
ler
saree
li
min
ate
dfr
omt
hec
hai
nofd
ist
ri
but
io
n.
(
4mks)

KAHURO/MUGOIRIJOINTEXAMI NATION
BUSINESSST
UDIES
PAPERII
565/2
1. a) Expl
ai
nthebenef
it
sthatadevel
opingcount
rymayderi
vef
rompr
epar
ingapr
operdev
elo
pmentpl
an (
10mk
s)
b
) Expl
ai
nfi
vefact
orst
hatencoura
g e
se n
tre
prene
urs
h i
pinKen
yat
oday. (10mk
s)
2. a) Usethef
oll
owin
gb al
ancesfr
omKe nbri
ckcompanytopr
epa
reJ
ourna
lent
ri
eson1stJ
anuar
y2016.
Shs
.
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|44
 BUSI
NESSST
UDI
ES
Mo torveh i
cle 230,000
Ma chiner
y 40,000
Creditor
s 10,000
De bt
o r
s 5000
Ca s
hi nha nd 20,000
Stock 10,000
Insurancep repa
id 5,
000
Ba nk 25,000
Ca pi
tal 660,000
Premises 33,500
b) Explai
nf i
v ewaysthroughwh i
chi nf
lationma ybec o
n t
roll
edo t
herthanu si
ngmo net
aryo
rfis
calpo
licies.( 10mks)
3. a) Explai
nf i
v efact
orstoco ns
iderwh end eterminingthegoodsa ndserv
icestop ro
d ucei
nthe marke
t (10mks)
b) De scr
ibefivebusinessma l
practi
cesth atc on s
ume r
sn e
e dtobep r
otect
e dagainstbythego
vernment
. ( 10mks)
4. a) Peterwh or unsaretai
lstoreh adthefo llowinga s
set
sa ndliabi
li
ti
esasa t31stMa r
ch2017
Sh s
Premises 100,000
De bt
o r
s 4,
000
Creditor
s 16,000
Stock 2000
Ba nk 60,000
Ca s
hi nha nd 20,000
Loanf r
o mAF C 50,000
Ca pi
tal 120,000
Du ri
ngt hemo nthofAp ri
l,thefoll
owi ngt ransact
ionstookplace
Ap r
il 1–So ldgo odsatac ostofs h s2000i ncash
2–Pa idcredi
torss hs8000i nc ash.
10–Re ceivedshs2000f r
o md eb tor
sincash
15–Bo ughtamo torv anfors hs35, 000pa y
ingb ycheque
25–Pu rchasedg oodswo rths hs15000a ndp ai
db ycheque
Req ui
red:
Prepareab a
lancesheetasa t25thApril 2017
b) De scr
ibefiveexter
nal f
actorsthatma yn e
g ati
vel
yaff
e c
tstheo per
ati
onso fthebu s
ines
s. (
10mks)
5. a) Omo n diop e
rate
sar eta
ilbus i
nessinh ish o mevil
lag
e .Expl
ainfi
veme t
h odsh ema yuset
odeter
minep r
icesforh
isgoods
o t
herthant heforce
so fdema nda nds u pply. (
10mks)
b) Explai
nt heb enef
it
so fthep ool
ingo friskst oaninsurancecomp any
. (
10mks)
6. a) De scr
ibefivereasonsforthein cr
easedu seo fcel
lphon e
sinb ank
ing. (
10mks)
b)T hef ol
lowingb al
ances heetwa sprepa redb ytheAccou nt
sClerkofUpe nziTrad
e r
s.
Upenzit
raders
Balances heeta sa t31De cemb er
Shs Sh s
Landandb uil
d i
ngs 770, 000 Ca pi
ta
l 900, 000
Motorvehicl
e s 600, 000 Ad dnetprofi
t 28200
Fur
n i
tur
e 100, 000 1,182,000
St
ocko fgood s 90, 00 1CDCL oan 400,000
St
ocko fstat
ionery 12,000 Credit
ors 47,000
Debtor
s 58, 000 Sa l
ari
esowin g 13,000
Cashinh and 160, 000 Ba nk 8000
In
surancea dvance 4,000 1, 650,000
1,650, 000
Det
erminethef oll
owing
a) Wo rkingc api
tal (
2mks)
b) Returno nc api
tal (
2mks)
c) Cu r
rentratio (
2mks)
d) Ca pi
talemp l
o y
ed (
2mks)
e) Bo r
rowe dc api
tal (
2mks)

MURARANDI A/KAHUROJ
OINTEXAMI
NAT
ION
565/1
Busi
n e
ssst
udi
es
Paper1
Tri
alexa
m

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|45
 BUSI
NESSST
UDI
ES
2h our
s
1. High l
ig htfourc h ara
c t
e r
ist
ic
so fec
o nomi cresou r
ces. (4mks)
2. Me ntio nfourf actorso fproduct
io
na ndt heirr e
wa r
d s
3. Statet heo f
ficema chined es
cri
bedb yth efollowingstate
me nts
. (4mks)
Use Mach i
ne
(a
)Ama chin et hatisu sedf orp r
epari
ngcashre ceipts
(b
)Ama chin eu sedf ortrimmi ngd ocumentint
or equired
shapea nds i
ze ___________
(c
)Ama chin ewh i
chi su sedf orcutt
ingunwa nted
docume ntsi ntore quireds hapeandsize ____________
(d
)Ama chin eu sedf orc utti
ngu nwan t
eddo c
ume nts
i
ntotinyp ie cestoa vo i
ds uchd ocumentsgetting
i
ntou nwa n tedh and s. _____________
4. Pame las old40b agso fbeansatsh.3,000e achtoar etai
ler
.Ther etai
le
rwa sall
o wedat r
aded i
scou
ntof10%a ndac as
h
di
scoun to f2%i f pa yme ntwa smadeb e
fore21d ays.Calc
u l
atetheamo u n
ttheretai
lerpai
di fhesett
le
dh i
sdebtont
h e5thday?
(
4mk s
)
5. Statef ourre ason sforp r
ivat
iz
ingpu b
li
cc orporati
ons. (4mks)
6. High l
ig htfourp o l
ici
e sthatabusi
ne s
sp erso nma yfindusefulf
o rhis/he
rb u
s i
ness. (4mks)
7. Statef ourfac t
o rsthatma yinfl
uenceap prop r
iateme ansoftrans
p ort. (4mk s)
8. Thef ollowin ginfo r
ma tionrel
ate
stoKi bo koT rader
sa sat31stDe cember2010.
Detai
ls Sh s.
Tot
al dr
a win gs 400, 000
Addedin ves t
me nts 800,
000
Capi
talo n31stDe c .2010 7,000, 000
Prof
it 3,100, 000
Calc
u l
ateKi b oko’sinitialcapi
tal (3mks)
9. Highli
gh tfo uruse so fNa t
ionalIncomes t
atist
ics. (4mks)
10.Thed i
agr amb el
o ws h owss hif
tinsuppl
yc urvef romSo sot oS1s1.Ou tl
inefourf
ac t
orsthatcouldhavecaus
edtheshi
ftshownb el
ow.
(
4mk s)
11.Accordi
n gt or ecen tfi
n di
n gs,unemploy
me n tisma jorproblemfacingt heyout
hinKe n ya
.Statefourmeasur
estha
ttheKen y
an
governme n tshou l
dt a ketos ol
vetheproblem. (4mks)
12.Foreacho fthef oll
o wingt ransac
ti
ono fKinyu atraders,i
den t
if
ythes ourcedocume ntandthejournali
nwh i
chthein
forma t
io
nis
re
corded .(4mk s)
Transac t
ion Sourcedocument Journa
l
(a
) Heb o ug htgoo dswo r
thksh.40,
000o nc red
itfromjit
ahidi
(b) Ki nyuar eturneds omeg oodsinjitahiditrader
swo rthksh. 2000
(c
) Pe terac ustome rboughtgoodswo rt
hk s
h .
5,000o ncredit
(d) Pe terre turnedg oodswo r
thKsh. 1000t oKinyu at
raders
13. Thefol
lowin ginf
orma ti
onwa sext
rac t
edfromtheb ook
so fMan gi
Trade
rson30thJ
une2009.
I
tem Shs
Purch
ases 720,
000
Openingstock 165,
000
Clos
ings t
oc k ?
Sal
es 980,
000
Margin20%
Pre
pa r
ethetradinga c
coun tofMa i
ngiTradersforth
ey earend
e d30thJun
e2009. (5mk
s)
14.Outl
inefourwa ysinwh i
chaf irmma yb eaff
ectednegati
vel
ybyi nf
l
atio
n. (4mks
)
15.Sta
tefourcha r
acteri
st
icso funderdevel
o pedcountr
ies
. (4mks
)
16.Namet hedocu me n
tsdescribedbythes t
atementsgiv
enb el
owa susedinInt
erna
ti
onalTr
ade
. (4mks
)
(a
)Re quest
sf orpaymentb ef
o r
eg oodsa r
edeli
vered
.
(b)Sh owso wn ers
hiport i
tl
eo fgoodsimp or
ted.
(c
)Sh owsth eco unt
ryofma nufact
ureo fgoods
(d)Sh owsth etransp
o r
tati
onc harg
esfo rgoods.
17.Highl
ightf
ou rfuncti
onso fmo ney. (4mk
s)
18.Outl
inefourcircumstancesu nde
rwh i
chp e
rsonalse
ll
ingisappropr
iate
. (4mks
)
19.Giv
enb elo
wa r
et ra
nsacti
on sofKhanEn terpr
is
es.Entert
h e
mi ntotheappr
opri
at
e“T”acc
ount
s.(Ba
lanc
ingn
otre
qui
re
d.)
20–9
August1:Startedbusines
swi thcashatb anksh.50,
000
“ 3:Pa ids alar
ie
ss h.2,000b ychequ e
“ 5:Bo ughtg oodsonc redi
tsh.13,000
“ 8:Wi thdrews h.5,000f r
o mb a
nkf oroff
iceuse. (
4mks)
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|46
 BUSI
NESSST
UDI
ES

20. Hi
ghl
ightf
ourfa
ctorsthatmaypromoteent
rep
reneu
rshi
pinKenya
.(4mks
)
21. Out
li
nefou
rfeat
uresofab onde
dwa re
h o
use.(
4mk s)
22. Out
li
nefou
rb e
nefit
sthatmayaccr
u et
oaf i
rmasaresul
tofi
ncre
asei
nit
ssca
leo
fpr
odu
cti
on.
(4mk
s)
23. Gi
vefou
rexamplesofdir
e c
tta
xes.(
4mk s)
24. St
at
efourre
asonswh ythegover
nme n
tli
cense
sbusine
ssact
iv
it
ies
.
25. Hi
ghl
ightf
ouress
e nt
ial
e l
ement
so fcommunic
ati
on.(
4mk s)

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|47
 BUSI
NESSST
UDI
ES
MURARANDI A/KAHUROJ OINTEXAMI NAT ION
565/2
BUSINESSST UDIES
PAPER2
1. (a)Expla
inf i
vef actorstha tinfl
u encet hed ema n do fap r
o duct. (10mk)
(b
)Ex pla
inf i
vewa ysinwh iche xternale nvir
o nme n tcann egativel
ya f
fec
tab us
ines
s. (10mk s
)
2. (a
)Ex pla
inf i
ver olesp l
aye db yi ntermediariesint hed ist
ributi
o nc hanne
l. (10mks)
(b
)Ex pla
inf i
vep os t
al s
erv icestha tfaci
li
tatec o mmu ni
cati
o n. (10mks)
3. (a
)Ex pla
inf i
vef eatureso fap e r
fec t
lyco mp et
itivema r
kets t
ructure. (10mk s
)
(b)On1stOc t
ob er2010, XYZt radersh ads h.110, 000c ashi nh andands h.
500,000a tbank
.Du r
ingt
hemo
n th,t
hefol
lo
win
g
tr
ansa
cti
onst ookp lace;
2010
Oct2:Cashs ale
sd irectl
yb a nkeds h .70520
Oct3:boughts t
ation er
yi nc ashs h .9,000
Oct4:boughts t
o cks h.40, 000a ndt hep ayme n twa sma den extmo n
thincash.
Oct5:pai
dJ osh, ac redi
tors h .
188, 000b yc heq ueinf ul
lse t
tleme ntofhi
saccountaf
terdeduct
ing6%CASHDI SCOUNT.
Oct10:Receivedac hequef o rsh .117,600f r
o mEs therafterall
o wingherac a
shdisco
u ntofsh
.2400.
Oct12:Soldg oodswo rths h.10,000t oe r
ico nc r
ed it
.
Oct16:Pai
ds al
ari
e ss h.
62, 000i nc ash.
Oct20:Withd r
ews h.100,000f romb ankf orb us i
nes suse.
Oct24:Arnoldad ebtorp aidh isac counto fsh.150, 000b yc hequel e
ss10%c ashdis
cou nt
.
Oct28:th
eo wn ert ooks omes tockwo rths h.
5, 000h omef orfami l
yu se.
Oct30:Depo sit
eda llthec ashi ntot heb anke xc eptsh .
27, 400.
Requi
red:
Pre
pareathreec olumnc ash boo ka ndb alancei toff.
4. (a
)De s
cri
b ethep ro ceduref oll
o we dwh enc laimin gc omp ensati
o nfromaninsura
ncec ompany. (10mk s
)
(b
)Ex pla
inf i
veb en efi
tsth atKe nyama yg etasame mb ero fCOMESA. (10mk s
)
5. (a
)De s
cri
b efivea ccountin gd ocu me nt
st hata reu sedinh omet rad e
. 10mk s)
(b
)Ex pla
inf i
vewa ysinwh icht hec entralban kc on tr
olsmo n eysu ppl
y. (10mks)
6. (a
)Hi ghli
gh tfi
ved iff
erenc esb etwe enap art
ne rshipa ndap u bl
iclimite
dc o
mp any
. (10mks)
(b
)T hefoll
o wingi nforma tionwa sex t
ractedfro mSa nsuraL t
d .Inthey e
ar2013.
Ma r
ch1:Cr editsp urcha sesfromOb wo ch a; sh1200Ag we tesh3000. Nyamamba2500
“ 5:Cr editsalestoOk e pl
os h2000
. Mi chekas h4, 300, Omwe gas h3, 300
“ 10Cr ed i
tp urch asesfro mOn yanch as h2700Ob wo cha6600, Obaki2200
“ 20Re tu rnedg oo dst oOb wo ch ash250, On yancha700
“ 26Cr ed i
tsalest oBu ndi850, Tend u630a ndOk ell
o900
“ 30Go od sreturn edb yb udn i
150a ndMi ch e
ke130.

Re
qui
re
d:En
tert
hea
bov
etr
ans
lat
io
ninr
el
eva
ntj
our
nal
s (
10mk
s)

WEITHAGA/KAHURO
FORMF OURENDOFT ERMT WO
565/1
BUSINESSST UDIES
PAPERONE
Inst
ruct
ions:Answe ral
l questi
on si
nthespaceprovid
ed.
1. Stat
efourfactor
sth atma yleadtothesuccessofab u
sines
s. (4ma r
ks)
2. Stat
efourb ene
fit
so flocati
ngaf irmnearthesourc
eo fr
awma ter
ials (4marks
)
3. Ou t
li
nefourbene f
i
tst h
a taccruetothegovernmentasaresul
tofp r
ivat
iz
ati
ono fapub
li
cente
rpri
se. (4ma r
ks)
4. Highli
ghtfourguideli
nest hatthegover
nme ntofacountr
yshoulda d
o p
ttopromo t
eef
fi
ci
entuseofherr
eso
urce
s.
(4marks
)
5. Stat
efourc ons
eq u
e nceso fpoorma nag
eme ntofgoodsinawa r
eho u
se. (4mar
ks)
6. Ou t
li
nefourme asuresthattheg over
nme n
tma ytaketocontr
olt
h eacti
vit
ie
sofmo nop
oli
es. (4mar
ks)
7. Ou t
li
neon ecir
cums tanceu nderwh i
cheacho ft
hefoll
owingsour
c edocumentsmaybeis
suedbyatrade
r. (4ma rks
)
i
) De bitnote
i
i)I nvoi
ce
i
ii
) Credi
tn o
te
i
v) Qu o
tati
on
8. Namet hed oc
ume ntsdes cri
bedb ythest
ate
me ntsgi
venb e
lowasu sedinint
ernat
io
nalt
rad
e. (3marks
)
a) Requestf
o rpaymen tbef
o reg o
o dsar
ed el
i
vered
b) Showso wn er
ship/t i
tl
eo fgo odsimpor
ted
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|48
 BUSI
NESSST
UDI
ES
c) Showsthet
ran
sport
at
io
ncha
rge
sforgoo
ds
9. Gi
veth
reebus
ines
srel
at
edb
enef
it
stha
tatra
derma
yde
ri
vef
romb
ein
gau
sero
fso
cia
lme
dia(f
aceb
ook,
wha
tsa
pp,
ins
tag
ram,
twi
tt
er
et
c) (3ma r
ks)

10.T
hef
ol
lo
win
ggr
aphs
howst
her
ateo
fpo
pul
at
io
ngr
owt
hof
agi
venc
oun
try
.
y
p
op u
lat
io
ngr
owt
h
r
atein%

0 a b T
imei
nye
ars

St
atefourfact
orsthatmayh avecontr
ibut
e dtothetr
endbe t
weenxa ndy. (
4mar
ks)
11.Outl
inefourfe
aturesofmo n
e ythatenabl
esittofac
il
it
atetheexchangeofgoo
dsan dser
vic
es. (
4ma
rks
)
12.St
atetheoffi
ceequipmentuse dtoperf
ormt hefol
lo
wingtasks (4ma
rks
)
i
. Cu tt
ingunwa nt
edd ocumentsintosmallp
ieces
i
i. Put
sh ol
esintodocume nt
stoa idinfi
li
ng
i
ii
. Pri
nti
nga d
d r
essesont h
ee nvelope
s
i
v. Cutt
ingdocumen t
sintorequir
e dshape
san dsiz
es
13.St
atefourbenef
itsthataproducermayg etbytra
n s
port
ingp r
oducetothemarke
tb yroa
d. (4ma
rks
)
14.Thefol
lowi
n ginf
o r
ma t
ionwa sextr
act
edfromt hebooksof Mure
ith
itrad
erson30thJu
ne2017.
It
em kshs
Purc
hases 720,000
Openi
n gst
o c
k 165,000
Cl
o s
ingstock ?
Sal
es 980,600
Margi
n 20%
Requi
red:
Pre
parethetrad
inga ccoun
to fMu re
it
hitr
a der
sfortheyearended30thJ
u n
e2017. (
5ma
rks
)

15. T
hef
i
gur
ebe
lows
howsas
hif
tint
hes
upp
lyc
urv
eof
agi
venc
ommo
dit
y.

Pr
ic
e S0 S1

E E1
0

f
orma
rki
ngs
che
mesi
nbo O
xMRCHEPKWONYo
no7242517
Q06
0 Q1 Pa
ge|49
Qu
ant
it
y
 BUSI
NESSST
UDI
ES

Out
li
nefou rfact
orsthatma yhavecau
sedtheshi
ftinsup
plycur
vef
romS0toS1 (4ma
rks
)
16.Hi
ghli
ghtth eprocedu
ref ol
lowedwhentaki
nganin su
ran
cepoli
cy (6mark
s)
17.Out
li
neth eso ur
cedocu mentforea
cho f
thefol
l
owi ngsu
bsid
iar
ybook
s (4mar
ks)
Subsi
diaryb ook Sourc
ed o
cu ment
i
) Salesjo
urn al
i
i) Re
turninwa rdsjo
urnal
i
ii
) Pu
rchasesjournal
i
v) Re
turnoutwa rdsjo
urnal
18.Hi
ghli
ghtfo urwaysinwh ichtheut
il
it
y/u s
eful
nessofaproduc
tca
nbeincr
eas
ed. (4ma
rks
)
19.Menti
onfo urwa y
sinwh i
chtheKenyangove
rnmen ti
scre
ati
nganena
bli
ngenv
ir
onme
ntt
oat
tr
acti
nve
stme
nts
.
(
4ma
rks
)
20.Th
ef ol
l
owingbal
anc
eswer
eext
rac
tedfr
omth
ebo
okso
fJu
li
atr
ade
r n31stDe
so cemb
er2017.
Fi
xedasse
ts 300,000
Cur
rentass
ets 123,
700
Cr
edit
ors 84,500
5yearl
oan 125,000

Det
ermi
n ethenetwort
ho ft
hebusi
nessa sat31stDec
emb e
r2017. (3mar
ks)
21.St
at
efourfacto
rsthatmaycauseinf
l
a t
io
ni nane conomy. (4mark
s)
22.Hi
ghli
ghtfourchara
c t
eri
st
ic
sof e
conomicre s
ources
. (4ma r
ks)
23.Afi
rmwish e
stointr
o duc
ean ewproductin
toth emarke
t.Outl
in
efourf
actor
stha
tshou
ldbecon
sid
eredi
nchoos
inganappr
opr
iat
e
medi
umf orpromoti
on. (4mar
ks)
24.St
at
efourfacto
rsthatcaninf
lu
encethec hoi
ceo fadi
str
ibut
ioncha
nnelofapar
ti
cul
arpr
oduc
t. (4ma r
ks)
25.Hi
ghli
ghtfourf
a c
torstha
tmayh i
ndereconomicd ev
elop
me nti
nKenya. (4mark
s)

WEITHAGA/KAHUROF ORMF OURENDOFT ERMT WO

565/2
BUSINESSST UDIES
PAPER2
Instr
ucti
ons:An swera nyFIVEq uesti
onsinthes pacep rovided.
1. (a)Di scus
sf i
vewa ysinwh i
chane ntre
p r
eneurc on tr
ibutestotheproducti
ono fgoods. (10ma rks
)
(b)Us ingawe llla
b el
edd iag
ram, expl
ainthec i
rcularflowo fi
ncomeinat wos ec
toreconomy. ( 10ma rks
)
2. (a)Ou tli
nefived i
f
ferencesb e
tweenp ri
vateli
mi te
dc omp anya n
dp ubl
iccorpor
a t
ions
. (
10ma rks
)
(b)Ex pla
infivesou r
ceso fgover
n mentrevenueu sedt ofinan c
ed e
vel
op mentexpendi
ture
. (10ma rks
)
3. (a)Ex pla
infiveadv ant
agesthatano rgani
zati
onma yg etb yo pe
rat
ingano peno f
fi
celay
out. (10ma r
ks)
(b)Thefoll
owingt r
a nsact
ionstookp l
aceinMu s aTra der
si nthemo nt
ho fJune2016.
June4:So ldgo odsonc redi
ttoBo i
n e
ttshs12, 000a n dWe ndyshs15,000
June7:Bo ug htgoodso ncreditf
romMwa u rashs30, 000
June9:We ndyr et
urnedg oo
d swo r
ths hs2,000
June12:Pu rchasedg oodsonc redi
tfromJ o hns hs20, 000andJ a
n eshs25,000
June15:Go odswo rt
hs hs5,000we rereturnedt oMwa ur
aandg oodswo r
ths h
s2,500we reret
u rne
dtoJane.
June20:Go odssoldo ncredi
ttoJ oyceshs7, 000a n dtoMa ri
ams hs10,000.
Requir
ed:Pr eparetherele
vantjournal
s . (10ma r
ks)
4. (a)Coca-c
olac ompa nyli
mi t
edisusingp r
izewin ni
n gc omp eti
ti
ontop r
omo tei
tsbrandedsodas(sof
tdr i
nks)
.Thepri
zesar
eo n
lywon
wh enoneb uysthep roduct.Expl
ai
nf i
veb enefi
tsthec omp an ymaygetb yusin
gt hi
sme t
hodo fpro
duc tpro
mo t
ion
.
(
10ma rks
)
(b
)So mepart
so fKen y
ah a
veb eenexperi
encinglowp op u
lati
o ng r
owthrat
er ecent
ly.Expl
ai
nfiveposi
ti
vee ff
ect
sofhavi
ngthelow
pop u
lat
iongrowthr ate. (10ma r
ks)
5. (a)Withtheaido fawe lll
abeleddiagra
m, explai
nt hee ff
ecto fanincr
easeinthesu p
plyofac ommoditywh i
l
eitsdemandremai
ns
con s
tant
. (10ma r
ks)
(b)Ga tangaent
erprisesh a
dth efol
lowingba l
ancesa sa t30thJu ne2015.

Ca
pit
al 20,
000
Sa
les 240,
000

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|50
 BUSI
NESSST
UDI
ES
Pur
chases 90,
000
St
ock(30/06/2016) 70,
000
7yearsban
kloan 30,
000
In
suranceex
pense
s 25,
000
Gener
a l
expen
ses 12,
000
Debtor
s 25,
000
Credi
tor
s 75,
000
Cashatbank 20,
000
Cashinhand 10,
000
Pre
mises 95,
000

Addit
ionali
nf
ormati
on:
Th
es tockon(01/07/2015)wass
hs160,
000.
Calcu
lat
e:
i
) Ma rk– u
p (2ma
rks)
i
i) Rateofsto
ckturn
over (2ma
rks)
i
ii
) Retur
no ncapi
tale
mp l
oyed (4mar
ks)
i
v) Curre
ntrati
o (2ma
rks)
6. (a)Discus
sfiv
efact
orstha
thav
ehi
nder
edthee
xpa
nsi
ono
fra
il
wayt
ran
spo
rti
nKe
nya
. (10ma
rks
)

(
b)Ove
rthey
ear
s,So
uth
ernSt
arh
aveg
rowni
nt
oal
ar
geb
usi
nes
sen
ter
pri
se.
Exp
lai
nfi
ved
ise
con
omi
eso
fsc
alea
ssoc
iat
edwit
hth
is
gr
owth
. (10marks
)

LUGARISUBCOUNT YI NT ERNALASSESMENTEXAM- 2019

Keny
aCe r
ti
ficat
eo fSec ond a
ryEd ucat
ion( K.C.S.E)
565/1
BUSINESSST UDIESPa per1
1. Highli
ghtfoure x
te r
n alf
actorsthatma yn ega t
iv
elyinf
luencetheoperat
ionalofabusi
ness. 4mk
s
2. Stat
efourr e
ason swh yconsume r
sh avetoma keac hoi
ceb et
weenc omp et
ingn eed
s. 4mk
s
3. Thefoll
owingf i
gu reswe reo b
tai
ne dfromt h erecor
dso fBukaEnterpr
isesfo
rtheyearended30thJ
une2014
Sale
s500, 000
Costofsales280, 000
Calcul
atetheg r
os sma r
gin. 4mk
s
4. Stat
efourwa ysinwh ichthen at
ureo f good swouldinfl
uencethech o
iceoftrans
port
. 4mk
s
5. Hi g
h l
i
gh tfourpro bl
e mse ncount
ere datth eimplementat
ionleve
lo fdev
e l
opmentplanni
ng. 4mk
s
6. Highli
ghtfourince nti
vesa dopt
edb yt heg overnmenttoe ncou
raged e
local
iz
atio
no fi
ndust
rie
s. 4mk
s
7. Statefourwa yso fi
mp r
ovingservicesd el
iveryinparast
atal
sandc orpor
ati
ons. 4mk
s
8. Stat
efourfactorstha tma yinfl
uenceaf irm’sd ec
isi
onint hety
peo fgoodsors e
rvi
cestoprodu
ce .
4mks
9. Stat
efourinsu r
anc ep ol
icie
st ha
tth eown ero fasup e
rma r
ketmayf i
ndu se
fulfo
rthebusine
ss. 4mk
s
10.Stat
efourp ro
b l
emso fu s
ingo ut
pu tapp r
o achinme asur
ingn at
io
na li
ncome. 4mk
s
11.Stat
efourn egati
vee ffect
so fi
nfl
ationi nane c
onomy . 4mk
s
12.Highli
ghtfoura dvantageso ftr
ansactingb usines
sth r
oughe -
comme rce. 4mk
s
13.Stat
efourc i
rcums tancesu nderwh i
c ho r
al commu nica
ti
o nisused
. 4mk
s
14.Fr
omt hetransact
io nsb el
ows tat
eth eac coun t
stobed ebi
tedandtob ecredi
ted.4mks

Tr
ansa
cti
on Debi
t Cre
dit
i
. Beganab us
inesswith10,000inbank
i
i.Boughtequi
pme ntincashforsh.
5000
i
ii
.Trans
fer
redsh.60,000fr
omb a
nktocashti
ll
i
v.Tooksh.
30.000t opayschoolfe
esforhi
sso n
15.Out
li
nefou
rfunct
ionso fmicr
ofi
nanceins
tit
uti
onsinKeny
a. 4mk
s
16.Out
li
nefou
rreasonswh ysomelessdevel
opedcountr
ie
sarer
el
uct
antt
ojoi
nfr
eet
rad
eag
ree
ment. 4mk
s
17.St
udyth
ed i
agr
amb e l
owa ndanswerthequest
iontha
tfol
l
ow.

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|51
 BUSI
NESSST
UDI
ES

St
atef
ourf
act
orst
hatmayc
aus
eth
eabov
echa
ngefr
omS0S0t
oS1S1. 4mk
s
18.Id
enti
f
ytheac
count
sinwhi
cht
hef
oll
owi
ngt
ran
sac
ti
onswoul
dberec
ord
edi
nth
ele
dge
r.
4mk
Des
cri
pt
ion Ac
cou
nt
i
. Go odsb
ou g
htf
orre
sal
e
i
i. Goodss
oldtoc
ust
omer
i
ii
.Go odss
oldtoc
ust
omerandre
tur
nedtobus
ine
ss
i
v.Go o
dsboughtf
romsup
pli
ersa
ndlat
erre
tur
ned

19.I
ndi
cat
eint
h espa
cesprov
idedth
erel
eva
nts
our
ced
ocu
men
tfo
reac
ho fth
eli
ste
dbo
okso
f o
rig
ina
len
try
. 4mk
s
Booksofori
gi
n a
lentr
y Sour
cedoc
u ment
I.Pur
chase
sretur
nsbook
ii
.
Ca s
hb oo
k
ii
i
.Sal
esdaybook
iv
.Sal
esret
urnsbook

20.St
at
efou
rcir
cumst
a ncesunde
rwh i
chper
sonals
ell
ingisap
propr
iat
e. 4mks
21.St
at
efou
rtool
sthatt
h ecent
ralba
nkcanusetocont
rolcr
edi
t. 4mk
s
22.Out
li
nef
ourci
rcu
ms tance
sthatwoul
dmakeano f
fi
cema na
gertorep
lac
eanexi
st
in
gma c
hin
ewi
thamo
der
none.
4mks
23.St
at
efou
rdis
advanta
geso famonopol
ymarket
. 4mk
s
24.St
at
efou
rimpl
ica
ti
o nsofalar
geyouth
ful
po p
ulat
io
nt oanecon
o myli
keth
ato
fKenya
. 4mks

25.Thefol
lowingdat
awase
xtr
act
edfr
omt hebooksof
Nyand
aruat
rad
erso
n
31/12/2015.Us
eitt
opr
epar
ehertr
ialb
a l
anc
ea sa
tth
atdat
e. 4mk
s
Capit
al 80,000
Sal
es 40,000
Land 60,000
Debtor
s 30,000
Ret
u r
nsi n
wards 20,000
Dis
coun tal
lo
wed 10,000

LUGARISUBCOUNT YASSESMENTEXAM- 2019

KenyaCer
ti
fi
cateofSecondaryEducat
io
n( K.
C.S.E)
565/2
BUSINESSST UDIES
PAPER2
TIME:2½ HOURS
1. a ) Expl
ainfi
vema cr
oe nvi
ronmentthatmayinf
l
ue n
cetheop
era
ti
onsofabusi
nes
sp o
sit
iv
ely
. 10mks
b) Descri
befiv
efeat
ureso fe
conomicresour
ces. 10mks
2. a ) Expl
ainfi
veb e
nefi
tsthatmaybereali
zedbyacount
ryasare
sul
tofgove
rnmentpol
ic
ytorel
ocat
ein
dus
tr
iesi
nrur
al
ar
eas. l0mk
s
b)T hefol
lowingbal
anceswe r
eextr
a c
tedfro
mt heboo
ksofSoil
oTra
derson31stDec
ember2016.
Mach i
ner
y 360,000
Furnit
ure 430,000
Sal
es 500,000
Openingstock 75,000
Cl
o s
ingstock
Purchas
es 395,000
Rentincome 72.000
Generale
x p
enses60, 000
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|52
 BUSI
NESSST
UDI
ES
Deb
tor
s 62,
250
Cr
edi
tor
s 101,
550
Ba
nk 202,
000
Ca
sh 88,
800
Ca
pit
al 1,
000,
000
Ad
dit
ion
al;i
nf
ormat
ion
;
Gr
osspro
fi
tmargi
nisst
at
edat40%

PREPARE
(i
)T radi
ng ,
profi
ta ndlossAc co untforthey ea
re nded31StDe cemb er2016. (5½mks)
(i
i
)Ba la
n cesheetasa t31stDe cemb er2016. (4½mks)
3. a) Overthey ea
r’ssou t
herns tarhasg rowni nt
oal argebu s
ine s
sen t
erpri
se.Expl
ainf
i
vedisec
onomieso
fsc
alewh i
chi
tma y
experi
ence. 10mks
b) Expl
a i
nfivedeme ri
tstha tma ybea ssociat
edwi t
hwa t
ertransport
. 10mks
4. a) Expl
a i
nfivecauseso fun fa
vo r
ableb al
an ceofpayme ntsf
o rmo stdevel
opingcount
ri
es. l
0mks
b) Expl
a i
nfivefactor
sc onsideredint hech oi
ceo fame anso ftr
anspo r
t. 10mks
5. a) Ex p
lai
nf i
ven egati
vee f
fe c
tso fi
nflati
ono nt h
ee conomyo faco untr
y. 10mks
b) Discussfi
vefactorsthatma yp romo teen t
repr
ene ur
shipinKe nya. 10mks
6. a) Expl
a i
nfiveben ef
it
stha tma yac c
ruet oac usto
me rwh ou sesau t
oma t
edtell
ermachi
ne(ATM5). 10mks
b) Entereachof t
h efol
lowi ngtransacti
o nsintherelevantl
e dgeraccounts.
i
. St ar
tedb usi
nessinJ unel 52014wi thk sh.500,000inb an k
i
i, Boug h
tamo t
o rvehicl
ei nJu ne16t h2014f orks h.250,000, paymentma debyche
que
i
ii
. Withdrawk s
h .50,000i nJ une20t h2014f ro
mt heb usi
n essbanka /ctobeu s
edi
ntheo f
fi
ce
i
v.J une24th2014p ai
ds alar
iesksh. 18,000c ash
v. June29thb oug htst
o c
kf o
rc ashk s
h .2,500
vi
. Depo s
ite
dk sh.100,000i nt
ot heb ank

WEST ERNCL UST EREXAMI NAT ION2019

KenyaCerti
fi
cateo fSeco ndaryEd ucat
io n(KCSE)
565/1
BUSINESSST UDI ES
PAPER1
TI
ME:2HOURS
1. Hi ghl
ightfourf ea
tureso fanu nderdeve l
opedcountry
. (
4mks
)
2. St at
efourr easonsforth epopulari
tyo f mobi
lepho n
esasame ansofcommu nic
ati
on. (4mks)
3. St at
efourc ir
c umst
a ncesu nderwh ichac redi
tnotemayb eusedinhometrade. (4mks)
4. T hefol
lowin ginfor
ma t
ionrelat
est oEl i
za’
sBak e
rsforth
ey ea
re n
d e
d31.12.2016.
Sa l
es 400, 000
Pu rcha
ses 350, 000
Op eningsto c
k 12, 500
Re tur
nsinwa rd s 10,000
Ca rr
iageinwa rds 5,000
Cl os
ingsto ck 100,000
Pr ep
areat radingacc ountforEli
za ’
sBa ke
rsfort
hey ea
rended31.12.2016. (
4mks
)
5. Ou tl
inefou rprinc
ipleso fgovernme nte xp
endit
ure. (4mks)
6. St at
efourc ausesofr educeds upplyof goodsinthema r
ket. (4mks)
7. F oreacho fthefoll
o wingtransacti
o ns, i
ndi
cat
et hebookofori
ginalent
ryi
nwh icht
hefol
l
owi
ngt
ran
sac
ti
onswoul
dbere
cor
ded.
Trans
action Booko for
igi
nale
ntr
y
a) Bo ug htg oodso nc r
editfo
rs ale.
b) So lda no l
dmo torvehi
c l
eo nc redit
c) Wi thd r
e wcashf orpersonal usef r
omt hebank.
d) Re turne dgood sbo u
ghto nc redit.

8. Out
li
nef
oura
dvan
tage
sofmo
bil
ebank
ing. (
4mk
s)
9. St
at
efou
rcont
ent
sofaMemor
andu
mo fAss
oci
at
io
n. (
4mk
s)

10.Whywo ul
dat r
aderchoos
etoby
passth
ewh ol
esa
leandret
ai
li
nd i
st
ri
buti
nghisgoods? (
4mk s
)
11.St
atef
ourd i
sad
vantag
esofanenc
los
edoff
ic
elayout
. (
4mk
s)
12.Fo
re a
cho ft
hefol
lowingt
ran
sac
ti
ons,i
ndi
cat
etheaccou
nttobedebi
te
da ndt
h eacc
ountt
obec
redi
te
d. (4mks)
Tran
sa c
ti
on Acc
ounttobed e
bit
ed Acco
unttob
ecr
e d
it
ed
i. Boughtmotorve
hic
leo
nc r
edi
tfr
omAd ams
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|53
 BUSI
NESSST
UDI
ES
i
i
. Al
l
owe
dad
isc
oun
ttoKe
it
had
ebt
or.
13.St
atefourf
a c
tor
scons
ide
redbyaninsur
ancecompanyi
ndete
rmin
ingamoun
tofp
remi
umschar
gedi
nli
f
ein
sura
nce
(4mks
)
14.Highl
i
g h
tfourcaus
esofi
nfl
at
ioninKenya
. (
4mk
s)
15.Outl
inefourway
sinwhic
htheg o
vern
me ntcanc
reat
eanenabl
i
ngenvi
ron
mentf
orent
rep
ren
eur
s. (4mks
)
16.Id
enti
fythewrongl
ypost
edent
rie
sinthecashbookbel
ow.
TWOCOL UMNCASHBOOK
Dat
e Det
ai
ls F
oli
o Ca
sh Ban
k Dat
e Det
ai
ls F
oli
o Cas
h Ba
nk
20.
05.
18 Pu
rcha
ses 50,
000 03.
05.
18 Ri
bbon
s 12,
000
21.
05.
18 Sa
les G.
L. 65,
000 15.
05.
18 Ph
yll
i
s[d
ebt
or] 30,
000
25.
05.
18 Wa
ges G.
L. 25,
000 20.
05.
18 Ge
ner
ale
xpe
nse
s 13,
000
28.
05.
18 Ba
nk 10,
500 Ba
l.c
/d 40,
000 55,
500
65,
000 85,
500 65,
000 85,
000

17.St
at
efourf
acto
rsthatwi
llmot
iv
ateanent
repr
eneu
rtove
ntur
eint
oap
art
ic
ula
rbu
sin
ess
. (
4mk
s)
18.Out
li
nefou
rbenefi
tsoft
hest
andardGaug
eRa i
l
waytoatr
ader
. (
4mk
s)
19.Hi
ghl
igh
tfourfe
ature
sofeco
nomicres
ource
s. (
4mk
s)

20.Ou
tl
inefo
urpro
ble
msenco
unt
ere
dinmeas
uri
ngNat
io
n a
l i
nco
meusi
ngtheo
utp
utapp
roac
h. (
4mk
s)
21.Hi
ghl
i
g h
tfou
rme a
sur
est
heKe
nyagov
ern
me n
tca
ntaketocur
bth
eprob
lemofune
mplo
ymenti
nth
eco
unt
ry.
(4mk
s)

22.Us
ethetab
lebel
owtoc
omp
utet
heCons
umerPri
ceInde
x(C.
P.
I) (
4mk
s)
Commo d
it
y Bas
eyearp
ric
e(PO)2017 Cu
rre
nty
earpr
ice(
PI)2019 C.
P.I
.
Br
ead 45 52
Mil
k(500ml) 45 60
Suga
r 100 120
Sal
t 10 15

23.St
at
efourway
sth
a tc
anbeuse
dbytheg
over
nme
ntt
ocorr
ectt
heba
lanc
eofp
aymentdefi
ci
t.
(
4mk s
)
24.St
at
ethefa
cto
rsofpr
odu
cti
oncor
res
pon
din
gtot
hef
oll
owingr
ewa
rds. (
4mks)
Fa
ctor Reward
i. Royal
ty
i
i. Wages
ii
i. In
ter
est
iv. Loss

25.F
indt
hemi
ss
ingv
alu
esi
nth
eta
bleb
elo
w. (
4mk
s)

As
set L
iab
il
it
ie
s Ca
pit
al

a
)500,000 ____x________ 200,
000
b
)325,000
)¬¬¬¬¬¬¬¬¬¬¬¬¬¬___ 50,
c 000 ______w______
___y
______
33,000 47,
000
d
)236,000
48,000 _______z
_____

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|54
 BUSI
NESSST
UDI
ES

WEST ERNCLUST EREXAMI NATION-2019

KenyaCert
if
i
cateofSe c
o ndar
yEd ucat
ion(KCSE)
565/2
BUSINESSST UDIES
PAPER2
TI
ME:2½HOURS
1. (a)Ex pl
ainfi
vec harac
ter
ist
icsofgoods. (
10mk s)
(b )Descri
beat wo–s ect
orc i
rcul
ati
onfl
owo finc
omei naneconomy. (
10mk s)
2. (a)Us i
ngad i
agram, e
xpl
aintheeffe
ctsofad e
cre
aseinthesup
plyofacommod
itywhi
lei
tsdeman
drema
insco
nstant
.
(10mk
s)
(b )Thefol
lowingb al
anceswe r
eavail
abl
efromtheb oo
kso f
Sal
waT r
ader
sdur
ingthea
ccoun
ti
n gp
eri
ode
nded31stDecembe
r2016.
(10mks)
Ksh.
Purchas
eforthey ear 400,000
Carr
iageinwards 50,000
Capi
tal 1,
000,000
Sal
es 800,000
Tot
al e
xpenses 195,000
Stoc
ko n1stJan u
ary2016 40,000
Retur
nso ut
wa rds 30,
000
Stoc
ko n31stDe cember2016 100,000
Tot
al c
redi
tors 35,000
Debtors 30,000
Retur
nsinwa r
ds 45,000

Required,calcul
ate;
a) Costo fgood ssol
d (2mks)
b) Grossp rof
it (2mks)
c) Marginp ercentage (2mks)
d) Rat
eo fs to
c kturnover (2mks)
e) Rat
eo fr et
urno nc apit
al (2mks)
3. (a)Ex pl
ainfourd i
ffer
encesbetweenap ostalorderan dmone yorder. (8mks)
(b)Re cor
dt hefollowingtr
ansact
ion so fMakok hatrader
sinther el
eva ntbookso fori
g i
nalentryi
ntheyear2014.
(12mks)
2014:
Jan.1st Creditsal
esto:Kipr
omo iKsh.26,000, Abdal
laKs h
. 20,000.
Jan.3rd Creditpurchas
esfromNd utaKs h
. 12,000,Mu saKsh .28,000a ndKi nyuaKs h .
40,000.
Jan.7th Returnedg oo
dstoth efo l
lowingsu pp
lier
s:Mu saKsh .4,000a ndKin yuaKsh. 5,
000
Jan.14th Creditsal
estoWa wireKs h.9,000a ndKa lul
uKs h.34,000.
Jan.18th Solda noldbusi
n es
sv eh i
cl
et oAu t
omo bil
eCo mp a
n yo ncr e
ditforKs h
.300,000.
Jan.22nd Creditpurchas
esfromOl eMa saiKsh.32,000,Kima niKs h.17,000.
Jan.26th Purchasedac opypri
n t
e rwo r
thKs h.250,000o ncreditfromc o p
y c
a tcomp a
ny .
4.
(a
)I nther ecentpastKe ny
ah asbeene xperie
n c
ingin cr
easedcasesofd ump ingrang i
ngf r
o mimp ort
ati
onofpoi
sonoussu
gar,gambli
ng
machin esamo ngo ther
s.Expla
infivelegisl
ativ
eme a
s ur
eswh i
cht heKe nyang overnmen thasputinplac
etoprote
ctcons
u mers
.
(
10mks)
(b
)Di s
cu ssfived i
sadvantag
e st
hatwillacc r
uetoKe n y
aa sac ount
rywh e nitadop t
simp ortres
tric
ti
o n
sp ol
i
cy. ( 10mks)
5.
(a
)Ou tl
inef i
vefa c
torsthatdeter
mineth ed eci
siono nwh atgoodsands ervicesafirmwi ll
p ro
duc e. (10mks)
(b
)Ke nyah aslostalo tofli
vesthr
o ughro adcarnagef o
rma n
yy e
a r
s.Exp l
a i
nf i
veme asurestheg over
nmentsh
o ul
dtaket
ored u
cefur
the
r
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|55
 BUSI
NESSST
UDI
ES
l
ossofl
i
ves. (10mks)
6.
(a
)Expla
infi
vemet
hodsuse
db yt
hecent
ralba
nktoredu
cethel
endi
ngac
tiv
it
ieso
fthec
ommer
cia
lbank
sinthecount
ry.
(10mks)
(b
)Aroundmid-
Juneeve
ryye
arth
emi n
ist
ersoff
i
nancei
nEastAf
ri
canco
u n
tri
esr
eadNat
io
nal
budge
tinthei
rre
spect
iv
ep a
rl
ia
men
ts.
Ex
pla
insomeofth
eprob
lemsthe
yma yenc
ounte
rinimp
lement
at
ionoft
hei
rprop
ose
dbudg
ets
. ( 10mks)

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|56
 BUSI
NESSST
UDI
ES
KAKAMEGANORT HSUBCOUNTYJOINTEXAMINAT
IONS
KCSET r
ia
lExam
565/1
BUSINESSSTUDIES
PAPER1
Answeral
lques
ti
onsi
nthes
pace
spr
ovid
ed.
1. Highl
i
ghtfou
rcompone
ntst
hatc
ons
ti
tut
eunhe
alt
hybus
ine
sse
nvi
ron
men
t (
4mk
s)

2. I
den
ti
fya
nyf
ourp
rov
isi
onsa
tt
ai
nedb
yth
edo
cume
ntst
hatg
ove
rnst
hei
nt
ern
alo
per
ati
onso
fac
omp
any(
4mk
s

3. Men
ti
onthet
ypeo
fma
ri
nel
oss
est
hatr
el
at
etot
hef
ol
lo
win
gcl
ass
if
ic
ati
on (
4mk
s)
a)T o
tal
los
s

b
) Pa
rti
all
oss

4. T
hefol
l
owingar
ety
pesofune
mp l
oyment
.St
ruc
tur
al
,Fri
ct
io
nal
,Cy
cli
cal
andHi
dde
nun
emp
loy
men
t.Int
hetab
leb
elo
wma
tcht
he
s
tat
ementwi
tht
heapp
ropr
ia
tety
peo f
unempl
oyment
. (
4mks)

STATEMENT T
YPEOFUNEMPL
OYMENT
i Peop
leappeartobeemp l
oyedbuti
fremovedfr
omwork
; t
hei
rmarg
inal
p r
oduct
ivi
tyofl
abouriszer
o.
i
i Char
acter
ize
db yasl
u mpinthegener
aleco
n o
micac
ti
vi
ti
esinacount
ry
i
i
i Fal
li
nd emandforaproduct
, l
ead
stoafal
lindema
ndforla
bour
requi
redtoma k
et h
atproduct
i
v Unemploymentduetolac
ko ff
act
ormo b
il
it
y

5. Ama nit
rad
ershadt
hefoll
owingde
tai
l
sinthei
rboo
ksofac
count
s. (
4mk
s)
Ca
pit
a l
31/12/2012 250,
000
Add
it
ionali
nvest
mentsf
ortheyear 100,
000
Goodsta
kenfromthebusi
nessf
orownuse 30,
000
Ca
pit
a l
11/1/2012 199,
000
Det
ermineAmanitr
ader
sprof
itorl
ossf
orthey
earasi
sappr
opr
iat
e

6. Br
ief
lyout
li
nefou
rwaysi
nwh i
chth
eg ove
rnmento
fKeny
asuppo
rtsd
evel
opmentofen
tre
pre
neu
rs( 4mk
s)
7. Manage
rsofBi
ashar
aBoraEn
ter
pri
seshaveat
endenc
yofpr
ovi
di
nginad
equat
einf
ormati
ont
othei
rempl
oye
es.
Sta
tef
ourne
gat
iv
e
ef
fe
ctsoft
hisb
ehavi
ourt
othe
iror
ganiz
ati
on (4mk
s)

8. Ou
tl
ief
n o
urr
eas
onswhyfi
rmswit
hpopu
larp
roduc
tsfi
ndi
tnec
essa
rytoco
nti
nual
l
yad
ver
ti
set
hes
amep
rod
ucts
9. Ou
tl
ief
n o
urc
ir
cumst
anc
esunderwhi
chmanuf
act
ure
rsmayse
lldi
re
ctl
ytor
eta
il
er
s (4mks
)

10.I
den
ti
fyf
ourf
act
orst
hatd
ete
rmi
net
hel
eve
lin
come
sge
ner
ate
dth
rou
ght
axa
ti
on. (
4mk
s)

11.I
den
ti
fyf
ourme
ri
tso
fimp
orts
ubs
ti
tu
ti
on (
4mk
s)

12.St
aef
t o
urf
act
orst
hatd
ete
rmi
net
hep
eri
odf
orwh
ichd
ocu
men
tss
hou
ldb
est
ore
d (
4mk
s)

13.Na
met heoff
i
cee qui
pmentusedtoper
for
me ac
ho ft
hef
oll
owi
ngh
igh
li
ght
edf
unc
ti
ons (
4mk
s)
Functi
ons Equi
pment
a Pr
inti
ngstampimp r
ess
ionone n
vel
opes
b Cutt
ingpaperin
torequi
redsi
zes
c Pi
n n
ingpaperstog
ether
d Recordi
ng,proc
essi
ng,sor
ti
ng&r e
tri
evi
nginf
ormat
io
n
14.Ou
tl
in
ea nyfourser
vic
esrendere
dbyap ubl
i
cwa r
ehous
e (
4mk
s)

15.OnJuly2010Mwa r
iki
Trader
shasKshs.6,000cashinh a
n d
,ab a
n kover
d r
aftofKshs
.2,
000.
Du r
ingt
hemo
nth ,t
hefo
llo
win
g
tr
ansa
cti
onstookplace
.
a) 18thJul
y: re
ceiv
edchequefromd ebt
o r
stot
ali
ngtoKs hs80,000
b) 22ndJuly
: Pai
dtele
phonebil
ls1,200c as
h
c) 28thJul
y: Withdr
ewKshs16, 000fromb a
nkforoff
iceuse
Ent
ertheabovei
n f
ormati
oninMwa r
ikiT
ra der
’scash
bookg i
venbelowa n
db ala
n c
eitof
f
16.Ineac
ho fth
efoll
owingcases
,indi
cat
ewh e t
hert
hes up
plywill
increas
e,decr
e a
seo rr
emai
ncons
tant
. (4mk s
)
a)I fth
ep r
iceofcof
feeri
ses,
thesuppl
yofteaislik
elyto
b)I fth
ep r
iceofcosmet
icsi
ncreas
es,t
hede mandforshoesisli
kel
yto
fo
rmarki
ngschemesinboxMRCHEPKWONYo no724251706 Pa
ge|57
 BUSI
NESSST
UDI
ES
c)I fthedemandforbee
fincr
eas
esthesu
pplyofwooli
sli
kel
yto
d)I fthepri
cesofcar
sfal
l
, t
hesupp
lyofpe
trol
isl
ike
lyt
o
17.Thefol
lowi
n gacc
ountbal
ance
swe r
eext
ract
edfr
omthebooksofSe
gut
unT
rad
er n30thSe
so pte
mbe
r2005
Purcha
ses 190,
550
Openingst
ock 35,
500
Clos
ingstock25,
000
Sal
es 256,
050
Sal
esretur
n 4,
800
Cal
cul
at
e (
4mk
s)
i
) Co stofgoodssol
d

i
i
) Pe
rce
nta
geo
fgr
ossp
rof
i
tan
dne
tpr
ofi
t

18.St
at
eayf
n o
urc
har
act
eri
st
ic
sof
eco
nomi
cre
sou
rce
s (
4mk
s)

19.St
at
eayf
n o
urf
act
orst
hatl
eadt
oco
stp
ushi
nf
la
ti
on (
4mk
s)

20. Outl
inefourmethodsthatthegovernmentmayusetoin
fl
uencetheq
uanti
tysu
ppl
i
edofaco
mmo
dit
y (
4mk
s)
21 L i
stfo
u rser
vic
esthatar
er ender
e dbywh ol
esa
ler
storet
ai
ler
s (4mk
s)
22 Indi
catethetyp
eo fof
fi
cee ti
quet
ted e
scri
bedbythefol
l
owingsta
tement
s (
4mk
s)
i
) Showingregar
dt ootherpeopl
ea c
cordi
ngtothe
irra
nkorsoci
alst
at
us……………………
i
i) Handl
ingpeoplepolit
el
ya ndplea
sant
ry…………………………………………………….
i
ii) Commitmentofawo r
kertoh i
sorgan
iza
ti
on………………………………………………. .
i
v) Abil
i
tytoconvi
n ceothersta
ctf
ull
y………………………………………………………….
23St
a ef
t ourcharact
eri
st
icsoftrampsa sameansofseat
ranspor
t (
4mk
s)
25i
dentiyf
f ourwaysinwh i
chma n uf
actur
erscont
ri
butet
oc ons
umerprot
ect
ion (4mk
s)

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|58
 BUSI
NESSST
UDI
ES
KAKAMEGANORT HSUBCOUNT YJOINTEXAMI NAT IONS
KCSETri
al Exam
565/2
BUSINESSST UDIES
PAPER2
1. a)Explainfiv
ema crofactor
st ha
tab u s
ines
sma nmu s
tr e
spondto,toensur
ethesurvi
valo
fhi
sbusi
ness
.(10mks)
b)Explainfiv
ed r
awb acksofu nemployment (
10mks)
2. a)Reco rdthefol
lowingt r
ansact
ionsb el
ongingtoF li
psideTra
d e
rsintheappr
opri
atel
edgera
ccoun
ts;
balanc
etheacc
ount
san
dex
tr
act
atri
alb al
a n
ceasat11thJ uly2013. (
10mk s
)
1stJuly2013 Sta
rtedbu s
inessbyb orr
o wingKshs100,000wh ic
hwa sdeposi
te
dinth
ebusi
nessbankac
count
3rdJu l
y Bo u
g htgo odsworthKs hs20,000f ro
mBu ll
seyetra
dersoncredi
t
6thJu l
y Soldg oodswo rt
hKs hs15,000o nc r
editt
oT ru
thme t
erTra
ders
8thJu l
yT rut
h metertrader
sr et
u r
nedg oodswo rt
hKs hs5,000
10thJ ul
yReceivedac redi
tno t
eo fKshs3,000f r
o mBu l
lseyetra
dersi
nrelat
iontosome
b)Expl
ainth erol
ep l
ayedb ywa reho
u si
nga sana idtotra
d e. (
10mks)
3.a)Thefo l
lowinginf
o r
ma tio
nr el
atestoAfri
canRe tail
Tradersforth
ey ea
rended31stDec1999 (
10mk s
)
Grossp rofi
t 600,000
Op e
nin gstock 285,000
Sales 2,400,000
Purchases 1,830,000
Expenses 360,000
Netpro fi
t 240,000
Closi
ngs tock 315,000
Fix
eda ssets 400,000
Debtors 900,000
Casha tb ank 35,000
Currentliabi
li
ti
es 438,000

a
) Ca
lcu
lat
e
i
) Co
stofgo
odssol
d
i
i
) Mar
k-upp
erce
nta
ge
i
i
i) De
btor
srat
io
i
v) Cu
rre
ntra
ti
o

b) Expla
infi
vewa y
sinwhichawe ll
-de
velo
p edtr
anspor
tindus
tr
ycanbeo fbene
fi
ttoth
eeco
nomyofacount
ry.
(10mks)
4. a)Bri
efl
ye x
plai
nthef
oll
owi ngmeansof wri
tt
encommu ni
cat
ion (10mk
s)
Report
s Circula
rs AgendaMinute
sMe moran
dum
b)Expla
infi
vetype
sofindir
ectta
xes (10mk
s)
5. a)Expl
ainfi
vereas
onswh yethi
cali
ssuesarenece
ssar
ytoab us
ine
ss (10mks)
b )Outl
i
n ef
iveadv
anta
geso fusi
ngac r
ed i
tcar
dtoab uye
r (10mks)
6. a)Expl
ainfi
vewaysthr
oug hwhichthecentr
albankmaypromotecr
edi
tc r
eat
ionamongc
ommer
cial
banks
(10mks)
b )Outl
i
n ef
ivedi
ff
ere
ncesb et
weenajointsto
ckcomp a
nyandac o
-opera
ti
ve (10mks)

KIGUMO
PREMOCK
565/1BUSI NESSST UDI ES
KCSET r
ial
Ex am
1.Highl
i
g h
tf ou
rwa ysinwh i
chtheg ove
rnmentcanensureacl
eane nvi
ronment
. (
4Ma r
ks)
2.Sta
tefourwaysinwh i
chc omme rcefa
cil
it
ate
sthesati
sf
acti
ono fhumanwa nt
s. (
4Ma r
ks)
3.Outl
inefourchara
cteri
s t
icsofane nt
repr
eneur. (4Marks
)
4.Sta
tefourimporta
nc eofag oodb usi
nesspl
an. (4Marks
)
5.Highl
i
g h
tf ou
rr e
asonst hatwouldd i
scour
ageyoufromjoi
ningap a
rtner
shi
p. (4marks
)
6.Sta
tefourdisa
d v
antageso fapublicwareho
use. (4Marks
)
7.Outl
inefourreas
onst hatcanma keafir
mu secomp et
it
iv
eadvert
ise
me nt
. (
4Ma r
ks)
8.Outl
inefourfe
a t
uresofa noli
gopo l
yma r
ket. (
4Ma r
ks)
9.Thedeman dforrent
alh ouseshasc o
nti
nuedtode c
li
neinKangarimarket.
Stat
efourf
act
orst
hatco
uldhavec
ontr
ibu
tedtot
his
.
(
4Ma r
ks)
10.Highl
ightfou
rb enefi
tsofpriva
ti
z i
nggovernmentpar
asta
tal
s. (
4Ma r
ks)
11.Hami
sistart
edab usinesson1st’Janua
rywithacapit
alofsh
s.350,000.Duri
ngth
ey e
art
hefol
lowi
ngtra
nsac
ti
onstookpl
ace
.
i
. Re ali
zedap rofi
tofs hs.
47,000.
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|59
 BUSI
NESSST
UDI
ES
i
i
. Br
oug
hti
nt
oth
ebu
sin
esse
qui
pme
ntv
alu
eda
tSh
s.50,
000

i
i
i. Ma
ded
rawi
ngsa
mou
nti
ngt
osh
s.20,
000.

De
ter
min
eHa
mis
i’
sfi
nal
cap
it
al
. (
4Ma
rks
)

12.
Ou t
li
nefo urfact
orsthatshouldbec on
sider
edwh enb uy
ingano f
fic
ema chi
ne. (
4Marks)
13.
Stat
efou radvantage
so fma i
lorderbusi
nesse
s. (4Mar
ks)
14.
Me nt
ionf ourdis
advant
a gesofco nt
ai
neri
zat
ionintransp
ort. (
4Marks)
15.
Highl
ightfou rchal
le
n g
e sthatarefa
cedbyd ev
elopi
n gcount
rie
sinc al
cul
ati
ngnati
onali
nco
me . (
4Mark
s)
16.
Stat
efou rfactor
sthatsh o
uldbet a
kenintoacco
u n
twh end ec
idi
n gonthetyp
esofgoodsandser
vi
cestop
roduce.
(
4Marks)
17.
Ou t
li
neth ewa ydif
fer
en tpar
tie
sa r
einter
est
edinthei n
format
ionc ont
ai
nedinthebal
ances
h e
et. ( 4Mark
s)
18.
Stat
efou rfactor
sthati
n fl
uencethetra
nsact
ionmo t
iveofh o
ldi
ngmo n
ey. (4Mone
y)
19.
Highl
ightfou rrol
esthatareplayedbybanki
nginth eeconomyo facountr
y. (4Mar
ks)
20.
Thefo
ll
o wingi nf
ormati
o nrel
atestoMa r
umi T
rader
so n1st’J
uly2015.
shs.
Op en i
ngs t
ock 40000
Clo si
ngs toc
k 55000
Pu rchases 200000
Ma rgin 25%
Re quired:DrawMa r
umi Trade
rs’t
radi
ngaccoun t
. (4Mar
ks)

21.
Outl
i
nefou
radva
ntage
sth a
tmaybeatt
ri
but
edtoahi
ghpopula
ti
o ngr
owthr
ate. (
4Ma
rks
)
22.
Hig
hli
ghtf
ourr
easo
nsthatmaymakeanins
ure
rnott
ocomp ens
ateanin
sur
ed. (
4Ma
rks
)
23.
Hig
hli
ghtf
oura
dvant
agesofusi
ngcel
lphon
eswit
hi
nando ut
si
dea nor
gani
zat
io
n. (
4Ma
rks
)
24.
Hig
hli
ghtf
ourr
easo
nswh ytheKen
yaConsume
rOrgani
zat
io
nh asbee
ninef
fe
cti
ve. (
4Ma
rks
)
25.
Outl
i
nefou
radva
ntage
so fsou
rcedoc
ument
s. (
4Ma
rks
)

KIGUMO
PREMOCK
KCSET r
ia
lExam
565/ 2
BUSI NESSST UDIES
PAPER2
Answe ranyfi
vequesti
onsinthi
sp a
per.
1(a)Expla
infi
vecirc
u mst
ancesunderwhi
c hama nufa
ctu
rerwouldfin
di tnece
ssarytosell
hispr
oduct d
ire
ct
toco ns
ume r
. (10Mark
s)
(b)
Ex pl
ai
nfivefac
torsaman age
rwo ul
dcon s
iderbef
orebuyi
ngoffi
cee q
u i
pmentfortheo r
gani
zat
io
n. ( 10Mark
s)
2(a)Expla
infi
vebene f
it
sthatwi
llacc
ruetotheKe n
yangover
nme ntwh e
nd ri
ll
ingofT u
rkanaoi
lwell
swill
b eco
mplet
ed.
(10Mark
s)
(b)Highl
ig
htfiv
ereasonswh yth
eg ov
ernmen tmayfi
nditnec
essarytop a
rti
ci
pateinbusine
ssact
ivi
ti
es.(10Mark
s)
3(a)Wi t
htheaidofad i
agr
am, exp
lai
nthee f
fect
sofchange
sincon su
me rincomeso nthedemandcurv
e.(10Mark
s)
(b)Highl
ig
htfiv
ewa ysinwh i
chthetr
ansportin
dustr
ycontr
ibu
testod e
v e
lopmentoftheKenyaneconomy.(
10Marks
)

4(
a)Explai
nfiv
ewa ysi
nwhic
hthecen
tra
lban
kmaycont
rol
th esup pl
yo fmoneyint
hec
oun
try. (10Mk
s)
(
b)Thefol
lowingtr
ial
bal
anc
ere
lat
esHazi
naTr
ade
rsa
sat31st’
De cemb er
2015.
Ha z
inaT rade
rs,
Tri
al Balan
ce,
Asat31st’De c
e mber2015.
Pa
rti
cular
s Dr.
(Sh ) Cr(
Sh)
Gener
alexpense
s 120,000
Rent 46,000
Te
lephone 48,000
Sa
lari
es 360,000
Sa
lesandp ur
chases 2,
600, 000 4,
000,
000
Di
scountsrece
ived 36,
000
Sa
lesret
u r
ns 40,000
MotorVehic
le 500,000
Debt
o r
s 300,000
La
nda ndBu i
ldi
ngs 2,
000, 000
Cas
ha tbank 120,000
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|60
 BUSI
NESSST
UDI
ES
Ca
shinhan
d 12,
000
Ca
pit
al 1,
950,
000
Dr
awing
s 80,
000
Cr
edi
tor
s 24,
0000
6,
226,
000 6,
226000
Add i
ti
onal i
nforma t
ion:
Stockasa t31st’Decemb erwa sk sh
. 100,000.
(i
)Prepar
et radi
n g,pr
ofi
ta ndl ossaccou nt. (
7Ma r
ks)
(i
i
)Ca l
culatereturnonca pit
a l
. (
3Ma r
ks)
5(a)Expl
a i
nf i
vel i
mita
ti
o nso fusingp ercap i
taincometocomparesta
nd a
rdso fli
vi
n gindif
fere
ntcount
ri
es.
(10Ma r
ks)
(b)Outl
inefivec aus
eso fun emp l
oyme ntinKe nya. (
10Ma r
ks)
6(a)Expl
ainfou rma c
ro-
e nvironme nt
a lfac
torsthatmighta
dvers
elyaff
ectthepe r
formanceo fabus
ines
s.(8Ma rks
)
(b)On1st’
Ma rch2014, Ke ndihadc ashinh an dsh.
7800andab ankoverdraf
to fshs.
23,400.Duri
ngthemonth,t
hefol
l
owingtr
ans
act
ion
s
to
o kp l
ace:
Ma rch3:Ca shs al
essh6,500p ai
dd irectintothebank.
“ 4:Bo ug htgoodsf orshs.15,000a n dp ai
dbycheque.
“ 6:Ca shs ale
ssh.50, 000.
“ 9:Re ceivedac hequef orSh .
76, 500f romAmo loi
nsett
lementofhisd ebt
s.
“ 13:Pa idin s
uranc
ep remiums h .16,000i ncash.
“ 14:Pa idKa mothob yc hequeSh .9,700i nful
lset
tl
ementofhisaccounth av
ingd ed
ucted3%c as
hd i
scou
nt.
“ 17:Ca shs ale
sSh .150, 000p aidd i
recttob a
nk.
“ 21:Wi thd re
wSh30, 000f romb a nkfo roff
i
ceu s
e.
“ 23:Re ceivedac hequ eofs h23,750f ro mRo t
ic
hinful
lset
tle
me ntofhisa c
cou n
tless5%c as
hdisc
ount.
“ 25:Pa idwa gesofs hs.20,000i nc ash.
“ 26:Ch eq uerecei
ve dfromAmo lowa sd i
shonor
ed.
“ 30: Ba nkeda l
lcashe xceptSh3, 000.
Pr e
pa reathre
e -columnc ashb ookd ul
ybala
nced
. (12Mark
s)

LANG’ATASUB- COUNT Y
565/1
BUSINESSST UDI ES
PAPER1
TIME:2HOURS
FORM4
1. I de
ntif
yfourimport
anceo fle
a rni
n gbusinessst
udie
stothestat
e (
4mk
s)
2. I de
ntif
yfourwa y
sinwh ichaf i
rmc a
nh elpinenvi
ronmentalc
o n
serv
ati
o n (
4mk
s)
3. St a
tefournewd eve
lopme nt
sino ffic
ema n age
me nt (
4mk
s)
5. Ou tl
inefourchannel
sAn gel
sc yberma yu sewhenp ur
chasi
ngc ompute
rsfromT optechc o
mp a
nie
sinJ
apa
n.(
4mk
s)
6. I de
ntif
yfouraspect
sofah ealt
h yb usi
nessen v
ir
onme n
t (
4mk
s)
7. T hefol
lowi
n ginf
ormati
o nwa se x
tracte
df r
omMwa mbiatra
dersasat30th Dece
mb er2017
Sh
Fur
nitur
e 220,000
Debtors 140,000
Pre
mi s
es 300,000
Mach i
ner
y 300,000
Cash 10,000
Banko v
erdraf
t 110,000
Credi
tor
s 30,000
Calc
u l
at
ec api
ta
l f
orMwa mbiatrade r
sL td.Asat30thDecember2017. (
4mk
s)
8. Di s
ti
n gui
shb et
weenthefoll
owi ngt e
rms ; (
4mk
s)
a)Ma t
eri
alandn on-
ma t
eri
algoods
b)Freeandecon o
micg oods
9. St a
tefourcir
cumstance
su nde rwh ic
ht hestat
ewo ul
dpriva
ti
zeas t
at
e-own edent
erpris
e (
4mk
s)
10.Highl
ightfourfea
tur
eso fare-i
n surancecomp any (
4mk
s)
11.Highl
ightfourci
rcumsta
n cesun derwh ic
hu pwardcommu nic
ati
onc a
nb eu sedi
na no r
gani
zat
io
n (
4mk
s)
12.Thefoll
owinginfor
ma t
ionrelatestoRwi mb ahTra
dersLTD.Intheyearended31/12/ 2017.
Netprof
it 65,000
Addi
ti
o nal
capi
tal 150,000
Clo
singcapit
al 350,000
Ift
heo pe
ningc a
pit
alwa ssh.191, 000d ete
rminethedrawi
ngsfortheyear (
4mk
s)

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|61
 BUSI
NESSST
UDI
ES
13.
Highli
ghtfou
rr e
asonsfordra
wingt h
ep opul
at
ionstr
uct
ureinanecon
omy (
4mk
s)
14.
Highli
ghtfou
rwa ysthro
ughwh ichthesta
tei
spu t
ti
nginpla
cetobri
ngsecu
rit
ytot
hema
tat
utr
ans
por
tse
cto
r(4mk
s)
16.
Fil
lintherel
evantchar
acte
ris
ti
cso fanent
repr
eneurtot
hede s
cri
pt
io
ng i
ven.
De s
cri
pti
on Chara
cter
ist
ic
a)Str
uggle
swi thdet
erminat
iontosolv
e
probl
ems
b)Aggres
siveinimple
me nt
ingidea
s
c)sta
rtshisownb usi
nessando pe
rate
siton
hisown
d)hasastrongb e
li
efi
nh i
ms el
finhisown
abil
it
ie
s

17.Preparerel
evantle
d g
ersfromthef ol
lowin gtransact
ionsrel
at
ingtoEldoT r
aders (
4mks
)
) 3rdF
i eb2017:b o
u ghtacomp ute
rf romMo iAv e
nu et
rader
swo r
thSh s.40,
000andpa
idbyche
que.
i
i) 4thF eb:Sol
ds t
ockwo rt
hSh s.20,000Cr editt
oJ apt
ootrader
s
Jepto
ot ra
dersret
urnedg o
o dswo rthSh s.5,000toEldoTrader
s.
i
ii
) El dotra
d e
rsrecei
vedac hequeof Sh s.15,000fromJ apt
ootrade
rs.
18.Dist
inguishbetweenthefo l
l
owingt e
rms (
4mk
s)
a) GDPa ndGNP
b) Na ti
on a
l i
ncomea ndperc ap
it
ai nco
me
19.Highl
ig h
tfourme t
h o
dsu sedtod el
ocal
izef i
rmsi nane con
omy (
4mks
)
20.Awino esel
lshergoodsa tmarku pof2/ 5.Fo rt
h eyearended31stDec.2017,hert
rad
inga
cti
vi
ti
eswer
easf
ol
lo
ws.
Openingstock Sh s50,000
Purc
h asi
ng Sh s30,000
Cl
osings t
ockSh s20,000
a) Ma rgi
np erc
entage (
2mk
s)
b) RateofStocktur
n over (
2mk
s)
21.GivefouraimsforGo ver
n mentpart
ici
pa ti
ngi nb usi
nessact
ivi
ti
es (
4mk
s)
22.T h
ed iagramb el
ows howsas hi
ftindema ndc u
r v
e
Pr
ic
e X2 X1

X1
X2
Qu
ant
it
y

Stat
efourposs
ibl
ereas
onsf
ort
hec
han
gei
nX1×x
1toX2×a
bov
e. (
4mk
s)
23.
Co mpl
etetheta
b l
ebel
ow (
4mk
s)
Sour
ceDo c
u ment Booko
fori
gi
nale
ntr
y
Re
ceive
dRe ci
ept
Cr
editnot
ereta
ined/co
py
Pu
rcha
sesj
our
nal
Sa
lesj
our
nal

24.
Thefol
lowinginf
ormati
onwasex
tr
act
edf
romthebookso
fSa
moe
itr
ade
rso
n31/
12/
2017
Shs.
St
ock(1/1/2017) 600,
000
Pu
rchases 1,
800,000
Sa
lesduringth
ey ea
r 2,
600,000
Markup 25%
St
ocks(31/12/2017) X
Re
qu i
re
d :Pre
pareSamoei
tra
der
str
adi
ngacco
unt (
4mk
s)

25.
Hig
hli
ghtf
ourc
har
act
eri
st
ic
sofat
imed
epo
sita
cco
unt (
4mk
s)

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|62
 BUSI
NESSST
UDI
ES

LANG’ATASUB- COUNT Y
565/2
BUSINESSST UDI ES
PAPER2
TIME:2HOURS
KenyaCert
if
i
c at
eo fSe co
ndaryEducation(K.C.S.
E.)
Answeranyfi
veq uestio
ns.
1. a )I de
n t
if
yf iveci
rcumstance
su nd e
rwh ichcommu ni
cat
ionma yb einef
fec
ti
ve. (10mar
ks)
b) Oneo fthema inobject
ive
so fvisi
o n2030i stod r
ast
ic
all
yre ducetherat
eofunemplo
y menti
nthee c
onomy.Ex
pla
infi
vewa
ys
thr
o ughwh i
chthegovernmen tma yachiev
et hi
s. (10mar
ks)
2. a ) Explai
nf i
veb enef
it
sofu s
ingc hequesasame ansofpaymen t (
10ma r
ks)
b) AsaCo untyGo ve
rnor,ex
plainfivewaysinwh i
chtheNationalIncomestat
is
ti
cswil
lb eofbe
nefi
ttoyou
(10mar
ks)
3. a ) Apartfr
o mt axa
tio
n, e
xplai
nfiveo the
rwa ystheGo ver
nme ntrai
sesitsf
ina
nces. (
10ma r
ks)
b) Descri
b efivest
epstakeninpe rs
on als
ell
ing (
10ma r
k)
4. a ) Dist
inguishb et
weenb ondedwa rehousea n
daf reewarehouse (
10ma r
ks)
b) Recordth efol
lowingtr
ansacti
o nsrel
ati
n gtoKibakist
oresi
nt heGe ner
alJour
nal2017: (
10marks
)
Oct2: Ap hot
ocopi
erwo rthSh s.
93,000we repurchase
do nc r
e di
tf
romL i
sapaperworks
.
Oct3. Of f
icefur
nit
urewo rthSh s
.70,000we resol
do nc re
ditt
oPo aplac
eforShs.80,
000.
Oct8. Ama chi
newh oseb ookv a
luewa sShs .
120,
000wa ssoldtoTet
utrade
rsforShs.
95,000onc r
edi
t
Oct10. Ano l
dmo to
rv e
h i
clewo rt
hSh s.270,000wass oldtoIt
e ntr
ader
sonc r
edi
t.

5. a
) Expl
ai
nfi
vecharac
ter
ist
ic
so fLi
feAssu r
ance (10mar
ks)
b
) Expl
ai
nfi
vewa y
sinwh i
chtheGo vernme n
tma yincreasetheamou nto fmo neyinci
rcu l
at
ioninaneco
nomy
(10mark
s)
6. a
) Expl
ai
nfourbene
fi
tsagenerall
inetexti
lema nuf
acturerma yenjoyb ys p
ecial
izi
nginth eprod
ucti
onofasi
nglep
rod
uct
.
(10mark
s)
b
) Recor
dthefo
ll
owingtra
nsacti
onsinat hreeco l
umnc ashbookandb alanceito f
fasat30thJune2017.
2017
June2. KCBl o
anr ece
ivedb ychequeSh .250,000
June4. Cashsalesamou nt
ingtoSh .30,000.
June6. Boughtstockwo r
thSh .70,000a ndp ai
dbyc hequ eless8%d isc
ou nt.
June9. Recei
vedSh .25,0000f romL onyanga p
uoad ebtorb yc h
eq u
ea f
terall
owinga2%d i
scou
nt.
’
June10. Theproprie
tortookSh .10,000cashf orhi
sson sb irt
hdayp a
rty.
June12. Withdre
wSh .
48,000f r
omt heb ankforoff
ic
eu se.
June15. Mu r
gorse t
tl
edh i
sa ccountofSh.45,000b ych eque.
June18. Pai
dwa gesSh .10,000c ash.
,
June20. Mu r
gorsc hequewa sdishonore
d .
June27. Soldgoodswo rt
hSh .
68,000receivi
ngSh .
28,000c ashandt herestbychequ
e .
June30. Trans
fer
reda l
lcashtot hebankEx ceptSh.
8,000.

MOMAL ICHEJ OINTEXAMI NATION

565/1
BUSINESSST UDIES
PAPER1
TIME:2HOURS
KenyaCe rt
if
ica
teofSecondaryEducat
io
n(K.C.
S.E)
1.Givefourfeatu
resofbasi
chuma nwa nt
s. (
4mk
s)
2.Defi
neth efoll
owingter
msa pp
ro p
ria
tel
y. (
4mk
s)
a)Mo rtali
tyrat
e
b)F er
ti
lit
yr at
e
c)L i
feexp e
c t
ancy
3.In
fantmo rtal
it
yrate
4.Dist
inguishbetweenDe bent
uresandPref
ere
nceshar
es (
5mk
s)
5.St
a t
ethet ypeofdocumentdescri
bedbel
ow. (
4mk
s)
a.Showf romwh ic
hc ount
rythegoodsa r
ecomingfr
om.
b.Writ
tenb yane x
p o
rte
rauthori
zin
gh i
sbanktosel
lgoo
dso
nhi
sbe
hal
f
f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|63
 BUSI
NESSST
UDI
ES
c.Allowi mpo r
tert og etg ood sonc redita ndcannotb ec hangedb yth ei
mp or
terwit
h outexp
ort
erspe
rmiss
ion.
He l
pinqui
cke
r
cl
e ara
n ceandi tisissu edb yc ou nt
ry’so f
fici
alabroad.
6.I ndicat
ewh et
he rth efo l
lowin gitemsa ref al
li
nginr e
al,n ominalo rpriva
tea ccount
s. (
3mks)
Acco unt
(a)Sales
(b)Ca rr
iageinwa rd s
(c)Fixtureandf i
ttings
(d)Stock
(e)Ca sh
(f
)Ca pi
tal
7.Ou t
linefourc haracteristi
cso fmu l
tip
les ho ps (
4mks)
8.Hi gh l
i
g htfourwa y sinwh ic
ht hece nt
ral bankactsasab ankertot heg o
ve r
n ment. (
4mks)
9.St atefourn egati
vee f
fec t
so fh i
g htaxati
o ninKe nya. (4mks)
10.Wr i
tewh e t
herth efo l
lo wingt ransact
ion swillhaveani ncrease,decreaseo rnoe f
fectonthebal
anceshe
ettot
al
s.
(
4mks)
T r
a nsact
ion Eff
ect
a.Wi t
h drews t
o ckfo rp ers
on al use
b.Pa i
dac r
edit
o rb yc he que
c.Ad ebtorp ai
db yc ash
d.Re c
e i
vedal oanb yc h e
q u
e
11.GiveMe s hackfou rrea sonswh yh esh ouldn oti
ntroduced i
vi
siono flabourinh i
sfactor
y . (4mks)
12.High l
i
g htfourro l
esp l
a yedb yp ers
o nalse cr
etar
y (
4mks)
13.Inawe l
llabell
edi ll
u strat
ion, showas hiftinthesupplyc urve. (5mks)
14.Givent hefoll
owi ngi nfo r
ma tiono fEli
sh aT r
aders (
4mks)
Landa ndBu ild
ing. 490,000
Mac hi
n er
y 300,000
5yearl oan 110,000
2yearl oan 80,000
Credi
tors 90, 000
Debtors 100,500
Sto
c k 75,600
Cash 40,000
Banko verdraft 69,900
Cal
c ul
a t
e,
a)Wo rki
n gc a
p i
tal (
1mk)
b)Cu r
rentra t
io (
1mk)
c)Ca p i
talown ed (1mk)
d)Bo r
rowe dc api
tal (
1mk)
15.Ou t
linefourtrend sinf o r
mso fb usi
ne s
su ni
ts. (
4mks)
16.Statefourreaso nst hatc anlea dtot hetermin at
io
no fa nin s
urancep o l
ic
y. (
4mks)
17.Statefoure s
sen t
ial eleme nt
si nc ommu nicati
on. (
2mks)
18.Reco r
dt hefoll
o win gt r
a nsa
c ti
o ninth eGe neralj
ourna l
.
June1st b ou ghtf urnit
u r
eo nc r
editfromWa hutrade r
s25, 000/ =
June2nd e xchan geamo t
o rv anb ookv alue240,000f o rama chinev al
u edat280,000/=
June3rd s ol
df u rniturevalu edat15, 000o nc redi
ttoEr ickfor13, 400/=
June4th b ou ghtav anfromc .m.cwo rth390,000p aing300, 000c as
ht heresttobep ai
dlat
er. (
4mks)
19.Statefourd i
sadv antag esofd elocali
zationo ffi
rms. (4mks)
20.Statefoura s
sump ti
o nso fcircularflowo fincomeinat wos ect
o reco nomy (
4mks)
21.High l
i
g htfourro l
eso fad v
ertisi
n ga genciesinproductp romo ti
on (
4mks)
22.Ou t
linefourb enefitso fcomme rcialprod uct
ion (
4mks)
23.Ou t
linefourrea sonsf oro net oh ir
eh uma nporte
ra geinsteado fap i
c k-
upt otran
spo r
tg o
ods. (
4mks)
24.High l
i
g htfourfeatu reso fperfectco mp eti
tiv
ema rket
. (4mks)
25.Na mef ourdo c
u me n t
st hato ri
g i
natefromt hesel
lerinth eho met r
ad e. (4mks)
26.Statefourlimit
a t
io nso ftri
al balance. (
4mks)

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|64
 BUSI
NESSST
UDI
ES
MOMAL I
CHE2CYCL E5EXAMI NAT ION
565/2
BUSINESSST UDI ES
Paper2
TI
ME:2½HOURS
Busi
n e
ssStu die
s
Paper2
1(a
)Ev er
yin s
tit
u ti
onh aso f
fi
c estaffwh ichs houldh avec ert
a i
np rescri
be dcod eofbehavi
our.Explai
nfiveoff
icee
ti
qu et
teo
fan
of
fi
ces t
aff
. (10mk
s)
(b)Expla
inf i
veme t
ho dsthatg overnme ntu sestop rotectco nsume rs. (10mk
s)
2.(a
)Ex pl
ainfiveinsu r
an c
ep oli
c i
e sthatthep rop r
ietoro fUmo j
aSu p e
rma rke
tma ytaketohisbu si
ness. (10mks)
(
b)Ex pl
ainfiven egati
vee f
fectso finfl
ati
o n. (10mks)
3.(a
)De scri
bef i
v echann el
su sedt od i
stri
b ut
ema nu f
acturedg o o
d sinKe nya.
(b)Highli
g htfi
ved if
ferencesbe tweenac o -
op erat
ivean dap ubl
iclimitedc o
mp any. (10mks)
4.(a
)Ex pl
ainfivec onsi
d er
ati
o nth atthec ou nt
yg ov
e r
n me ntsh oul
dl ooki n
tob efor
eIncur
ringan yexpendit
ure. ( 10mks)
(b
)T hefol
lowin gtransacti
on swe ree xtr
ac t
edf romt heb oo kso fNKUNDIe n
te r
pri
sefort
hemo nthofAu gust
.
(
i) Au gust1stcashinh andKs h.13,000a nda tba nkKs h.28,000.
(
ii
) Au gust3rdcashs alesamo unti
n gtoKs h. 15,000.
(
ii
i) Au gust5threceiv
edKs h.7,800f ormMwe ndaa ft
erd educ t
iono f2½%c as
hd isc
o unt
.
(
iv
) Au gust7thpai
dKa na nuKs h.17,000b ych equei nfullsett
lemen tofheracc
oun tofKsh.17,500.
(
v) Au gust9threceiv
edKs h.19,000f romKa wiraa fte
ra l
lowin g5%c ashdis
count.
(
vi
) Au gust10thDe positedKs h.15,000i n t
ot heb ankfromt hecasht i
ll
.
t11ht
t
(
vii
)Au g us ookKs h.9,500c ashfo rp e
rsona luse.
(
vii
i)Au gust15thp a
idBa raza k
sh .8,800a ft
erd e
d ucti
n g12%c a
shd iscountbycheque.
(
ix
)Au gu t20thBa
s nkeds o
mec as
hl eavingKs h .
12,300i nthec asht i
l
l.
Requir
e d
:Pr epareat hr
eec o l
u mnc as
hb o okf orNju ndiEn te
rprised ul
yb ala
n c
ed. (10mks)
5.(a
)Kwa nzal i
mi t
edo perat
esa smo nop ol
ist.Ex pl
ainfivep ossibl
ef actorsthatma d
ethisf
irma cquir
emo n opo
lypower.
(10mks)
(b
)Af lo
we rfarme rinNj or
oh a
ss e curedma rk etforherflowe rsinaf oreignma rket
.
Exp
lainfiver e
ason swhyt hef arme rsh o
u ldu s
ea irtot r
an sporthisflowers.
6.(a
)Ex pl
ainfou rfactor
st hatle
a dt obu si
n esssu ccess. (8mks)
(b)Thefollowingt r
ialb a
lancewa sextractedf r
o mt heb ookso fHe kimaT radersasat
30thJune2010.
Detai
ls Dr.(s
h ) Cr(sh)
Premises 1,500,000
Debtors&c red
itors 20,000 30,000
Cash( bank) 90,000
Cash( hand) 10,000
Purchasesa nds a
les 140,000 320,000
Stock1stJu ne2010 45,000
Sal
ariesan dwa ges 50,000
Discounts 6,000
Commi ssion s 2,
000
Powe r&ligh t
ing 12,000 8,
000
Returns 15,000 19,000
Carri
agei nwa r
d s 5,400
Carri
ageo u t
wa rds 2,300
Capit
a l 1,
543,700
Furni
ture 27,000
1,922,700 1,
922,700

St
ockon30thJ
une2010waswor
ths
hs.22,000
Re
quir
ed:
Pr
epar
eatradi
ng,
prof
ita
ndlo
ssa
cco
untfortheye
are
ndi
ng30thJ
une2010. (
12mk
s)

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|65
 BUSI
NESSST
UDI
ES

F
ORMARKI
NGSCHEMESI
NBOXMRCHEPKWONYONO724251706

AL
LOT
HERSUBJ
ECT
SAREAVAI
LABL
E

f
orma
rki
ngs
che
mesi
nbo
xMRCHEPKWONYo
no724251706 Pa
ge|66