Business Studies p2
Business Studies p2
Business Studies p2
2022
BUSINESS STUDIES
565/2
Time: 2hours 30Min.
SIGNATURE:…………………...DATE:………………TEACHER…………..
Instructions to candidates.
1. Write your name, index number, school and signature in the spaces given above.
2. Sign and write the date of the examination in the spaces provided above
3. This paper consists of 6 questions. Answer any five questions.
4. All answers should be written in the answer booklet provided.
5. Candidates should check the question paper to ascertain that all the questions are
printed.
6. All questions should be answered in English.
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PANGANI GIRLS HIGH SCHOOL
Question 1 2 3 4 5 6
Marks
TOTA L
1. a) Explain five reasons for the popularity of using internet in product promotion.
(10mks)
b) Explain five services that the central bank of Kenya may offer to commercial
banks. (10mks)
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PANGANI GIRLS HIGH SCHOOL
2% discount in each Case, Roiki Sh. 980, Kombo Sh. 1960.
Prepare Kifaru Traders three column cash book for the month of April, 2020. (10mks)
3. a) Explain five monetary policies that the Kenyan government may use to control
inflation. (10mks)
5. a) Describe four chains of distribution that a Kenyan producer would use to sell
his/her goods to South Africa. (8mks)
b) The following Trial balance was prepared from the books of Nerea traders as at
31st December 2015.
Nerea Traders
Trial Balance.
As at 31st December 2015.
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PANGANI GIRLS HIGH SCHOOL
Particulars Dr. Cr.
Sh. Sh.
Sales 900,000
Purchases 600,000
Returns 80,000 20,000
Carriage Inwards 40,000
Carriage Outwards 3,000
Stock (January 2015) 100,000
Rent. 60,000
Creditors 170,000
Debtors 120,000
Interest on loan 18,000
General expenses 7,000
Capital 178.000
Fixed assets 240,000
1,268,000 1,268,000
Additional Information.
Required:
i) Prepare a Trading profit and loss account for the period ended 31 st December
2015.
ii) Calculate:
a) Return on capital employed.
b) Current ratio.
c) Rate of stock turnover.
(12mks)
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PANGANI GIRLS HIGH SCHOOL