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PANGANI POST MOCK EXAMINATION

2022

BUSINESS STUDIES
565/2
Time: 2hours 30Min.

NAME: ……………………………………..ADM NO.:………CLASS


………

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.

For official use only.

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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)

2. a) Explain five trends in business ownership. (10mks)

b) On 1st April 2020, Kifaru traders had the following balances:

Bank 15,000 (CR)

Cash 25,000 (DR)

April: 3rd Paid wages in cash Ksh. 15,000

5th Bought goods worth Ksh. 750 in cash.

6th Received cheques from the following debtors after allowing a

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PANGANI GIRLS HIGH SCHOOL
2% discount in each Case, Roiki Sh. 980, Kombo Sh. 1960.

8th Chebe paid Kifaru by a cheque of Sh. 1,000.

11th Bought machinery by cheque for Sh. 5,000.

13th Cash sales paid directly to the bank Sh. 4000.

15th Withdrew Sh. 1,000 for private use.

20th Cash sales Sh. 20,000.

21st Banked cash amounting to Sh. 1,000.

24th A cheque received from Chebe 0n 8th April was dishonoured.

27th Received Sh. 3,000 by cheque from Kiko, a debtor.

30th Banked all the available cash except Sh. 1,000.

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)

b) Explain five factors to consider when choosing an office layout. (10mks)

4. a) Explain five factors that may limit entrepreneurial development in a country.


(10mks)

b) Explain five negative effects of unemployment. (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.

Stock as at 31st December was Ksh. 100,000

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)

6. a) Explain five circumstances under which a country may restrict international


trade. (10mks)

b) Explain five types of direct taxes. (10mks)

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PANGANI GIRLS HIGH SCHOOL

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