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2015 KCSE Meru South Form 4 Joint Examination

Business Studies Paper 2

1.

a) Outline five ways in which a computer can improve efficiency of an organization. (10 marks)
b) Intermediaries play a key role in the chain of distribution. Explain any five such roles. (10 marks)

20 marks

2.

a) Explain five ways in which the government may create an enabling environment for business. (10 marks)
b) The following trial balance was extracted from the books of Tausi Traders as at 30th June 2014

Required:Prepare a trading, profit and loss account for the year ended 30th June 2014. (8 marks)
Prepare tausi’s balance sheet as at 31st
June 2014 (4 marks)

20 marks

3.

a) Explain five remote external factors that influence business operations. (10 marks)
b) Expalin five reasons why government may impose trade restrictions. (10 marks)

20 marks

4.

a) Record the following information relating to the traders in the relevant books of original entry for
the month of June 2013 and post them to the relevant ledger Accounts. (10 marks)
June 2: Credit sales to Wako retailers worth sh 8,000 issued invoice No. 0111.
June 5: Credit purchases from Jamu suppliers worth sh 30,000 received invoice No. 20
June 8: Credit sales to Mwenda worth sh 12,000 issued invoice No.12
June 16: Credit purchases from Sam Traders and Mwiti traders worth sh 5,300 and sh 6,200 and issued with an
invoice No.13 and 14 respectively.
June 18: Credit sales Wako retailers and Mwiti traders worth sh 5,300 and 6,200 and issued with an invoice No. 13
and 14 respectively.
June 24: Credit purchases from Sam and Wangu traders sh 1000 and 2,800, invoice No.451 and 722 respectively.
b) In the last few months, the supply of mangoes in Chuka Town was on increase. Explain any five factors that
may have attributed to this. (10 marks)

20 marks

5.

a) Most of the African countries are suffering from rapid unemployment rates. Explain five causes of this situation.
b) Public finance refers to activities carried out by the government in raising and spending of finances. Explain five purposes of public finance.

20 marks

6.

a) Outline five advantages of pipeline transport over the road transport. (10 marks)
b) The following transaction took place in the business of JohanaMakembo in the month of May 2013.
2013
May 1: started business with sh 100,000 in bank and sh 20,000 in cash
May 3: Purchased goods values at sh 24,000 from Kanyua on credit
May 6: Paid rent sh 1200 by cheques.
May 10: Purchased a delivery van valued at sh 720,000 from Mwema Motors and paid by cheques.
May 12: Sold goods in cash sh 45,000.
May 15: Paid Kanyuash 10,000 by cheques.
Required: Use the above information to:
Prepare the relevant ledger accounts and balance them off as at 15th May 2013 (7 marks)
Extract a trial balance. (3 marks)

20 marks

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