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    Business Studies Paper 2

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    MBUGUA GRAPHICS
    The document provides instructions for a Business Studies exam paper. It consists of 6 questions and candidates must answer 5. It covers topics like insurance, trade terms, stock valuation, international trade documents, and cash books. Candidates are instructed to write their details and sign before answering any 5 questions out of the 6 provided.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Business Studies Paper 2

    Uploaded by

    MBUGUA GRAPHICS
    444 views3 pages
    The document provides instructions for a Business Studies exam paper. It consists of 6 questions and candidates must answer 5. It covers topics like insurance, trade terms, stock valuation, international trade documents, and cash books. Candidates are instructed to write their details and sign before answering any 5 questions out of the 6 provided.

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    Business Studies Paper 2

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    The document provides instructions for a Business Studies exam paper. It consists of 6 questions and candidates must answer 5. It covers topics like insurance, trade terms, stock valuation, international trade documents, and cash books. Candidates are instructed to write their details and sign before answering any 5 questions out of the 6 provided.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    444 views3 pages

    Business Studies Paper 2

    Uploaded by

    MBUGUA GRAPHICS
    The document provides instructions for a Business Studies exam paper. It consists of 6 questions and candidates must answer 5. It covers topics like insurance, trade terms, stock valuation, international trade documents, and cash books. Candidates are instructed to write their details and sign before answering any 5 questions out of the 6 provided.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    You are on page 1of 3

    NAME………………………………………….……………....INDEX NO……..……………..…………….

    ADM……………………………….DATE…………................................................SIGN………….……….

    565/2
    BUSINESS STUDIES
    PAPER 2
    JULY/AUGT 2023
    TIME: 2½ HOURS

    NJARAKU FORM FOUR JOINT EXAMINATION TERM II, 2023


    Kenya Certificate of Secondary Education (K.C.S.E)

    INSTRUCTIONS TO CANDIDATES
    1. Write your name and index number in the spaces provided above.
    2. Write the date of examination and sign in the spaces provided above.
    3. This paper consists of 6 questions.
    4. Answer any five questions.
    5. All questions carry equal marks.
    6. Candidates should check to ensure that all pages are printed as indicated and no questions are missing.

    FOR EXAMINER’S USE ONLY


    Question Maximum score Candidate’s score
    1 20

    2 20

    3 20

    4 20

    5 20

    Total score

    Page 1 of 3 NJARAKU Joint Examination Business Studies


    1. a) Explain five importance of insurance in trade within Kenya. (10 marks)

    b) Outline five differences between hire purchase and credit purchase terms of payments as used in
    home trade. (10 marks)

    2. a) Explain five roles played by Nairobi Securities Exchange in the Kenyan economy. (10 marks)

    b) Explain five sources of monopoly power. (10 marks)

    3. a) Explain five circumstances under which a producer may choose to transport goods using
    containerization. (10 marks)
    b) The following trial balance was extracted from the books of Wakimbo Traders as at
    31st December, 2017
    Detail Dr(shs) Cr(shs)
    Stock on 1 st January 2017 60,000
    Purchases and Sales 400,000 580,000
    Returns 20,000 50,000
    Debtors and creditors 65,000 40,000
    Premises 540,000
    Machinery 200,000
    Fixtures and fittings 100,000
    Carriage outwards 8,000
    Wages and salaries 30,000
    Discounts 25,000 32,000
    Commissions 16,000 14,000
    Rent 10,000
    Carriage on purchases 10,000
    Cash at bank 70,000
    Capital 818,000
    1,544,000 1,544,000
    Additional information
    Closing stock was valued at shs.70,000
    Required:
    Prepare trading, profit and loss account for period ended 31st December 2017 (10 marks)

    Page 2 of 3 NJARAKU Joint Examination Business Studies


    4. a) Explain five benefit that the government gets from the existence of bonded warehouse. (10 marks)

    b) There has been an increase in the demand for cabbage at Soko Mjinga Market. Explain five factors
    that may have caused the trend. (10 marks)

    5. a) Explain each of the following documents as used in international trade:


    a. Bill of lading
    b. Import licence
    c. Certificate of origin
    d. Consular invoice
    e. Letter of Hypothecation (10 marks)

    b) Explain five measures that may be taken by the Central Bank of Kenya to reduce the money in
    supply (10 marks)

    6. On 1st October 2013, Kamukunji Traders had shs.10,000 cash at hand and shs.40,000(Cr) at the
    bank. During the month, the following transactions took place.
    October 2 Bought goods worth shs.3,100 by cheque.
    3 Paid motor expenses shs.6,000 in cash.
    6 Sold goods worth shs.8,200 cash
    10 Paid a creditor shs.9,500 by cheque after deducting a 5% cash discount.
    12 Received a commission of shs.580 directly into the bank account.
    14 Sheila, a debtor, settled her account of shs.30,000 by cheque less a 2.5% cash discount.
    15 The bank deducted shs.850 from the business account for services rendered.
    19 The owner took shs.1,500 by cheque for personal use.
    23 Paid Muthoka Traders shs.39,200 by cheque in full settlement of their account less 3%
    cash discount.
    24 Withdrew shs.15,000 from the bank for business use.
    26 Received shs.8,200 cash from a debtor in full settlement of a debt of shs.8,500
    30 Took all the cash to the bank leaving only 1,800 in the cash till.

    Required:

    Prepare a duly balanced three column cash book. (10 marks)

    b) Safaricom Co. Ltd today enjoys internal economies of scale due to its expansion. Explain five
    internal factors that may have caused its success. (10 marks)

    Page 3 of 3 NJARAKU Joint Examination Business Studies

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