U ive three reasons why it iw important to seek permission from the school administration. To enable the administratiom provide essential tools lor usc during the field study It is an oftical requirement.". To enable the administration to take care of the disruptions of the school programme. To enable the administration arrange for transpory lunch To enable the administration to take the necessary safety precautions. ATy3xT maFks i State the advantages of studying landslides through fieldwork. It enables learners to apply the knowledge learned in the classroom. ". Rqtus C M n3y It makes lcarning interesting It helps learners to develop manipulative skills. It enhances retention of memory. It provides detailed indepth broader learning mafks It makes learning real. Ve av 10. Name two mountains in East Africa that are ice capped. A i Mt Kenya. Markst Mt Kilimanjaro 1i Give two types of moraine Lateral. Terminal. Kece trr Medial Englacial t2marks Ground subglacial 312 1 MS 12 Access free revision content at www.freekcsepastpapers.comb e dlagram below represents an upland glaciated landscape. L se t answer question b i . F mark Name the features marked E-I runcated spuriylun valle 1wak jal F-Glacial trough U-shaped valley v mark G-Ribbon lake ii Describe the formation of each of the following features. Pyramidal peak Ice accumulates in several eracks hollows on mountain sides. Lce exerts pressure on the cracks hollows. Plucking action of ice enlarges the hollows allowing more ice to collect in them. Iuvin4 Freeze-thawactien leads to enlargement of cracks hollows making large basins called cirques corries. Moving ice plucks off loose rock materials from the basinsthus enlarging them further. Nivation cats into the back wall of basins making them recede into the mountain side. Steep-sided knife-edged ridges are formed separating the basins. Three or more of these ridges aretes converge at the mountain top Any 6 xL forming a jagged peak known as a pyramidal peak horr.


Nivation cats into the back wall of basins making them recede into the mountain side. Steep-sided knife-edged ridges are formed separating the basins. Three or more of these ridges aretes converge at the mountain top Any 6 xL forming a jagged peak known as a pyramidal peak horr.bmafks 312 1 MS 13 Access free revision content at www.freekcsepastpapers.comSECTIONA Give the three forces which have contributed to the geoid shape of the arth. Ccntrilugal lorce" Centripctal force Gravitatiomal force mark z Name the minerals that make up the core of the earth. Iron Nickel arksS a List two cxamples of volennie igneous rocks. 'Vive Pumice Basalt Obsidian Trachyte Rhyolite Andesite Any 2 2marks b Give three characteristics of sedimentary rocks. They form from pre-existing original rocks. They have cleavage bedding.planes 3oiu They form horizontal layers are stratified. They are non-crystalline. Some sedimentary rocks contain fossils Th ha-t beddty pla nu. An 3x marks- 3. A Apart from aspect, list three other factors that influence the distribution of natural vegetation. Altitude Terrain Ststt Gvdie Drainage Any 3H Climate marksT SoilsE.lupic ht wun Actiy 312 1 MS 2 Access free revision content at www.freekcsepastpapers.com.


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SECTION 0 Anse al he uestions section i the spaces provided.1 Inthis question, show al the sips in your cleltions, giving teaser at each age UseTogaritins comet o decal paces, valuee27ing tousase Cnet 2 Make hte subject ofthe forma mais 3 Line AB given below is one side of triangle ABC. Using ruler and a pair of compasses oaly 9 Complete the rangle ABC sich tht 8C Semand ZABC 45, ama i On the same diagram const cle toushng sides AC, BA prodsed and BC proce Gmais 3 8 4 Maps rte act v 6 ree AA pint P divides AB inthenra 6Find de pst esto of oi mais 5 The op of a tbe is regular hexagon, Each side ofthe hexagon measures 0.em. Find theInaximu percentage enor cll the perme o th wpa tee Giri 6 A student ata certain college has a 60 chance of passing an examination atthe fist attempt. Each ime a student fils and repeats the examination, his chances of passing ae increased by 15 .Calculate the probability that a student inthe college passes an examination atthe second ora the th atempt marks 7. An aeroplane flies at an average speed of 00 knots due East from a point P S3.4 N, 40 E to anotherpoint Qt takes 2'hours to reach pont Q.Calculate: the distance in nautical miles it wravelled; mark i the longitude of point Q to 2 decimal places. Marks 8 a Expand and simply the expression marks b Use the expansion in a above to find the value of 145 2 marks n8 6Inthe figure below, angles BAC and ADC are equal. Angle ACD is aright angle.


An aeroplane flies at an average speed of 00 knots due East from a point P S3.4 N, 40 E to anotherpoint Qt takes 2'hours to reach pont Q.Calculate: the distance in nautical miles it wravelled; mark i the longitude of point Q to 2 decimal places. Marks 8 a Expand and simply the expression marks b Use the expansion in a above to find the value of 145 2 marks n8 6Inthe figure below, angles BAC and ADC are equal. Angle ACD is aright angle. The ratio ofthe sidesAC:BO 423, Given that the area of wiangle ABC is 24 em, find the area of triangle ACD, 3 marks Points A 2.2 and B 4.3 are mapped onto A' 2.8 and B 4,15 respectively by a transformation T.Find the atin of T marks The equation ofa citcle is given by 4x? 4 ? Rr 209-7 0,Determine the coordinates of the centre of the circle G marks Solve for yin the equation log,, 39 2 1 log, -8 G marks Without using a calculator or mathematical tables, express Y in surd form and simplify. Te0s30 3 marks The figure below represents triangular prism. The faces ABCD, ADEF and CBFE are rectangles. AB Sem, BC 4-cm, BF 7 emand AF Tem. Calculate the angle between faces BCEF and ABCD, marks AA particle moves in a straight line ffom a fixed point, Its velocity Vis after r seconds is givenby V 9F- dielCalculate the distance travelled by the panicle during the third second. Marks Find in raians, the values of x in the interval O x 2r for which 2 cos x sin Leave the answers in terms of 2 4 marks SECTION 11 50 marks Ansiver any five questions in this section.17 Avtrader deals in two types of tice: type A and type B.


Rr 209-7 0,Determine the coordinates of the centre of the circle G marks Solve for yin the equation log,, 39 2 1 log, -8 G marks Without using a calculator or mathematical tables, express Y in surd form and simplify. Te0s30 3 marks The figure below represents triangular prism. The faces ABCD, ADEF and CBFE are rectangles. AB Sem, BC 4-cm, BF 7 emand AF Tem. Calculate the angle between faces BCEF and ABCD, marks AA particle moves in a straight line ffom a fixed point, Its velocity Vis after r seconds is givenby V 9F- dielCalculate the distance travelled by the panicle during the third second. Marks Find in raians, the values of x in the interval O x 2r for which 2 cos x sin Leave the answers in terms of 2 4 marks SECTION 11 50 marks Ansiver any five questions in this section.17 Avtrader deals in two types of tice: type A and type B. Type A costs Ksh 400 per bag and type B costs Kah 350 pert 2 The trader mixes 30 bags of type A with 0 bags of type B. If he sells the mixture ata profit of20 , calculate the selling rice of one bag. Of the mixture 4 marks b The trader now mixes type A with type B inthe ratio x: y respectively If the cost ofthe mixture isKh 383.50 per bag find the ratio xy. 4marks 6 The trader mixes one bag of the mixture in part a wth one bag ofthe mixture in par b above marks Calculate the rato of type A rice to type B rice inthis mixture18 Three variables p, gand rare such that p varies directly as g and inversely asthe square of When p 9,q Iandr 2Find p when q 13 andr 5. Mits 6 Express gin terms ofp and.


Of the mixture 4 marks b The trader now mixes type A with type B inthe ratio x: y respectively If the cost ofthe mixture isKh 383.50 per bag find the ratio xy. 4marks 6 The trader mixes one bag of the mixture in part a wth one bag ofthe mixture in par b above marks Calculate the rato of type A rice to type B rice inthis mixture18 Three variables p, gand rare such that p varies directly as g and inversely asthe square of When p 9,q Iandr 2Find p when q 13 andr 5. Mits 6 Express gin terms ofp and. 1 mark 6 fp is increased by 20 and ris decreased by 10 ind: i a simplified expression forthe change in gin tems ofp andr; marks the percentage change in g marks 19 a Complete the table below, giving the values core to 2 decimal places. E 0 30 6 90 120 150 180 210 240 270 300 330 360Sin 2x os7 oar 0 Joa7 os7 mars 8 On the grid provided, draw the graphs of y sin 2x and y 3eose 2 for 0 x 360 onthe sameaxes, Use a scale of I em to represent 30 on the x-axis and 2.em to represent unit on the y-axis. Smurks Use the graph in b above o solve the equation 3eosy sind 2 marks 4 State the amplitude of y eos 2 ark 20 Inthe figure below Da isa diameter of he ctle ABCD cet O, rus 10cm. TCS is tangentthe circle at C, AB BC and angle DAC 38 , sieem f 3 Find the size ofthe angle: ACS; ai BCA. Ea Calculate the length of AC: marks Gi AB, mais 21 Two policemen were together ata road junction.


1 mark 6 fp is increased by 20 and ris decreased by 10 ind: i a simplified expression forthe change in gin tems ofp andr; marks the percentage change in g marks 19 a Complete the table below, giving the values core to 2 decimal places. E 0 30 6 90 120 150 180 210 240 270 300 330 360Sin 2x os7 oar 0 Joa7 os7 mars 8 On the grid provided, draw the graphs of y sin 2x and y 3eose 2 for 0 x 360 onthe sameaxes, Use a scale of I em to represent 30 on the x-axis and 2.em to represent unit on the y-axis. Smurks Use the graph in b above o solve the equation 3eosy sind 2 marks 4 State the amplitude of y eos 2 ark 20 Inthe figure below Da isa diameter of he ctle ABCD cet O, rus 10cm. TCS is tangentthe circle at C, AB BC and angle DAC 38 , sieem f 3 Find the size ofthe angle: ACS; ai BCA. Ea Calculate the length of AC: marks Gi AB, mais 21 Two policemen were together ata road junction. Each had a walkie rake, The maximum distance at which one could communicate withthe other as 2.5 km, Ove ofthe policemen walked due East at 3.2 kmh while the other walked due North st 24 kmh. The policeman who headed Fast travelled for km while the one who headed Noth walled for y kmbefore they were unable to communicate Draw a sketch 1 represent te relative positions ofthe potismcn 1 mark 6 3 From the information above form two simultaneous equations in x and y marks i Find the values of x andy. S marks li Calculate the time taken before the policemen were unable to communicate, 2 marks 22, The able below shows the distribution of marks scared by 60 pupils ina test.


Ea Calculate the length of AC: marks Gi AB, mais 21 Two policemen were together ata road junction. Each had a walkie rake, The maximum distance at which one could communicate withthe other as 2.5 km, Ove ofthe policemen walked due East at 3.2 kmh while the other walked due North st 24 kmh. The policeman who headed Fast travelled for km while the one who headed Noth walled for y kmbefore they were unable to communicate Draw a sketch 1 represent te relative positions ofthe potismcn 1 mark 6 3 From the information above form two simultaneous equations in x and y marks i Find the values of x andy. S marks li Calculate the time taken before the policemen were unable to communicate, 2 marks 22, The able below shows the distribution of marks scared by 60 pupils ina test. Marks 11-20 21-30 31-40 41-50 s1-60 61-70 71-80 61-90Feweny 2 5 6 o w ufo 3 On the grid provided daw an ogive that represents the above information 4maris Use the graph 1o estimate the interquartile ange ofthis information marks Im order to pass the tes, a pupil had to score more shan 48 marks, Calulate the percentage of pupils who passed the test -matks 23 Halima deposited Ksh 109375 in a financial institution which paid simple interest at the rate of8 pa. Atthe end of? Years, she withdrew all the money. She then invest the money in shares. Thevalue ofthe shares depreciated at 4 pax. During the firs year of investment.


She then invest the money in shares. Thevalue ofthe shares depreciated at 4 pax.during the firs year of investment. In the next 3 years, the value ofthe shares appreciated atthe rate of 6 every four months, Calculate the amount Halim invested in shares, 8 marks Calculate the value of Haims shares: atthe end ofthe first year; marks i athe end of the fourth year, to the nearest shilling marks Calculate Halima s gain from the shares as a percentage, marks 24 The be below shows values ofr and some values of y forthe curve y x 3x?x 12 in the range4ers2. A Complete the table by filling in the missing values of x - 4 -3s 3 -2s 2 1s 1 os 0 os 1 1s 20 y 41 faa 26 oat fsa -r9 2 marks On te grid provided, draw the graph y x 30 4x12 for 4- x 2,Use the scale: Horizontal axis 2 em for 1 unit and vertical axis 2 em for S units.marks By drawing a suitable straight line, onthe same grid as b above, solve the equation:P 3e- Sr 60, Smarks.


4 marks 12. State four circumstances under which an accountant communicates to the accounts clerk. 4 marks 13. State four factors that lead to decrease in supply of commodities in a market. 4 marks 14. Highlight four differences between money order and postal order. 4 marks Business studies Paper 1 2 www.freekcsepastpapers.com 15. Highlight four benefits of locating a firm near the source of raw materials. 4 marks 16. The following information were extracted from Shiriki traders books of account for the period ended 30th April 2023 Land 100,000 Capital 94,000 10 year Equity loan 20,000 Debtors 6,000 Cash 15,000 Stock 10,000 Debentures 14,500 Creditors 8,000 Drawing 5,500 Calculate a Working capital. 2 marks b Capital employed. 2 marks 17. Outline four factors that may make an insurer to charge high premium. 4 marks 18. Outline four guidelines that should be followed by the government in its expenditure. 4 marks 4 marks 19. State four ways in which government may control monopoly power. 4 marks 20. Highlight four advantages of m- banking. 4 marks 21. Give four types of errors that may not be disclosed by a trial balance. 4 marks 22. Outline four challenges faced by saving credit co-operatives societies SACCOs in Kenya today. 4 marks 23. Highlight four demerits of giving a product to customers freely for trial. 4 marks 24. Identify the documents that match the following description as used in the international trade. 4 marks Description Document a The document that specify the manufacture to supply the goods b The document that allow the person named therein to claim the goods when arrived at the port of destination c Documents that shows that the prices charged on import are fair d The document that authorizes resale of goods being imported 25. The following is a subsidiary book that was drawn for the first week of the month of May 2023; Date Particulars Credit note no.


10 marks b . On 1st January 2021, Mbale traders had shs.22, 500 in cash and shs.250, 000 at bank. During the month, the following transactions took place: Jan 2: made cash sales of shs. 465,200. Jan 5: Received a cheque of shs. 451,250 from Kamau traders in full settlement for their debt after allowing a 5 cash discount. Jan 15: paid Ndovu traders shs. 184,000 in cash after deducting a cash discount of shs.16,000. Jan 20: Deposited shs. 200,000 from cash till into the bank. Jan 25: Paid wages shs. 144,000 in cash. Jan 26: Bought goods worth 30,000 on credit from kisii traders. Jan 28: Settled Mbago traders account of sh. 300,000 by cheque, less 15 cash discount Jan 29: Withdrew shs. 250,000 from the bank for office use. Jan 30: Deposited all the cash into the bank, except shs. 59,700. Required: Prepare a duly balanced three column cash book. 10 marks 6. A . Explain five circumstances under which personal selling may be appropriate to a business. 10 marks b . The following trial balance was prepared by Laketi traders as at 31 December 2022. Particulars Debit shs. Credit shs. Premises 850,000 Debtors 650,500 Creditors 820,000 Motor vehicle 800,000 Equipment 550,500 Gross profit 1,960,200 Furniture 350,000 Stock 75,000 Bank 200,000 Cash in hand 150,000 General expenses 117,800 Discount received 66,100 Commission allowed 12,400 Insurance 7,500 Lighting 4,600 Salaries 78,000 Capital 1,000,000 3,846,300 3,846,300Business studies Paper 1 2 www.freekcsepastpapers.com Using the information given above: i Prepare profit and loss account. 4 marks ii Prepare balance sheet. 6 marks NTIMARU SUB-COUNTY CLUSTER EXAMS 565 1 BUSINESS STUDIES PAPER 1 SEPTEMBER 2023 1.


Premises 850,000 Debtors 650,500 Creditors 820,000 Motor vehicle 800,000 Equipment 550,500 Gross profit 1,960,200 Furniture 350,000 Stock 75,000 Bank 200,000 Cash in hand 150,000 General expenses 117,800 Discount received 66,100 Commission allowed 12,400 Insurance 7,500 Lighting 4,600 Salaries 78,000 Capital 1,000,000 3,846,300 3,846,300Business studies Paper 1 2 www.freekcsepastpapers.com Using the information given above: i Prepare profit and loss account. 4 marks ii Prepare balance sheet. 6 marks NTIMARU SUB-COUNTY CLUSTER EXAMS 565 1 BUSINESS STUDIES PAPER 1 SEPTEMBER 2023 1. Outline four negative effects of liberalization to a country 4mks 2. State four ways in which the Kenya National Chamber of commerce and industry K.N.C.C promotes development of business activities in Kenya, 4mks 3. Highlight four problems associated with high population growth rate in a developing country like Kenya. 4mks 4. Outline four challenges that a new entrepreneur will experience when establishing business in Kenya 4mks 5. Outline four tools used by central bank to control credit. 4mks 6. State four advantages of taking an endowment insurance policy 4mks 7. Highlight four disadvantages of cartels to consumers. 4mks 8. Kenya has been experiencing an upward trend in the price of petrol as a result of infalation. State four steps that can be taken to minimize expenditure on petrol. 4mks 9. Given below are books of original entry, state the source document used to prepare each of the books. 4mks 10. State four ways in which mobile phones service are important in promoting business activities. 4mks 11. Highlight four disadvantages of a monopoly. 4mks 12. Highlight four reasons why many African countries fail to achieve high economic growth rates. 4mks 13. Outline four circumstances under which a producer would not require a lot of warehousing space. 4mks 14.


4mks 13. Outline four circumstances under which a producer would not require a lot of warehousing space. 4mks 14. The for following information relates to Bukhayo Traders for the year ended 31st December 2010 shs. Opening stock 65,000 Purchases 250,000 Sales 33,000 Profit margin 15 Closing stock ? Required. Prepare Bukhayo Traders trading account for the year ended 31st December 2010 4mks 15. Outline four functions of microfinance institutions in Kenya. 4mks 16. Maziwa had shs. 60000 in his business bank account as at January 1st 2011. During the month the following transactions took place Jan 2nd withdrew shs. 40,000 from bank for office use. 3rd credit sale to Juma shs. 25,000 Books Source document i Cash book ii Sales journal iii Purchase journal iv Sales return journalBusiness studies Paper 1 2 www.freekcsepastpapers.com 6th paid salaries in cash shs.25,000 10th credit purchase from Jane shs 40,000 14th Maziwa took cash shs, 10,000 to pay school fees. 19th received a cheque from Juma shs. 20,000 25th returned goods to Jane shs. 2,000 28th took all the cash to the bank leaving a balance of shs.1,000 Required Prepare a duly balanced two column cash book. 5mks 17. Highlight four drawbacks that a firm may experience by employing a customer care receptionist who has bad qualities. 4mks 18. Highlight four reasons why hypermarkets are increasingly becoming popular in Kenya. 4mks 19. Outline four circumstances under which personal selling are appropriate. 4mks 20. The following information was obtained from the books of citizen traders on 31st July 2010 shs. Motor vehicle 80,000 Plant and machinery 70,000 Bank loan 60,000 Stock 25,000 Debtors 30,000 Cash in hand 20,000 Creditors 30,000 Required. Prepare Citizens Traders balance sheet as at 31st July 2010. 21.


Motor vehicle 80,000 Plant and machinery 70,000 Bank loan 60,000 Stock 25,000 Debtors 30,000 Cash in hand 20,000 Creditors 30,000 Required. Prepare Citizens Traders balance sheet as at 31st July 2010. 21. The following information relates to Jua Kali enterprises for the year ended 31st March 2011 Mark up 25 Sales ksh. 250,000 Determine i Gross profit 2mks ii The margin percentage 1mk iii Cost of goods sold 1mk 22. Highlight four circumstances under which specialization in production may not be necessary. 4mks 23 List four major sources of Government revenue. 4mks 24. Highlight four ways the Government can use to influence the demand of a commodity in the market. 4mks 25. Classify each of the following goods as either producer or consumer goods. 3mks Date Details F Cash Bank Date Details F Cash Bank Goods Classification a Factory b Private car c Iron oreBusiness studies Paper 1 2 www.freekcsepastpapers.com NTIMARU SUB-COUNTY CLUSTER EXAMS 565 2 BUSINESS STUDIES Paper 2 JULY AUGUST 2023 - 2 Hours 1. A Explain five ways in which the government of Kenya can reduce the level of unemployment. 10 marks b Give five differences between a public limited company and a public corporation. 10 marks 2. A Explain five reasons why the use of sales persons is a preferred method of sales promotion. 10 marks b Explain five sources of public finance. 10 marks 3. A Explain five circumstances under which a cheque may be dishonoured. 10 marks b The following balances were extracted from the books of Jasho Trades on 1st January 2022 Ksh. Capital 500,000 Creditors 150,000 Motor van 180,000 Furniture 200,000 Stock 50,000 Debtors 80,000 Cash 140,000 The following transactions took place during the year ended 31st January 2022: i Sold furniture worth Ksh 60,000 for which Ksh.


A Explain five circumstances under which a cheque may be dishonoured. 10 marks b The following balances were extracted from the books of Jasho Trades on 1st January 2022 Ksh. Capital 500,000 Creditors 150,000 Motor van 180,000 Furniture 200,000 Stock 50,000 Debtors 80,000 Cash 140,000 The following transactions took place during the year ended 31st January 2022: i Sold furniture worth Ksh 60,000 for which Ksh. 40,000 was received and the balance was due at the end of the year ii Purchased goods worth Ksh. 100,000 for which Ksh.70, 000 was paid and the balance was still outstanding at the end of the year. Iii Cash Ksh. 10,000 was taken from the business by the proprietor to pay his son s school fees Required: Draw Jasho Traders balance sheet as at 31st January 2022 showing the items in their relevant classes 10 marks 4. A Explain five reasons for the popularity of sea transport in Kenya s export trade 10 marks b Describe five features of economic resources 10 marks 5. A Explain five functions of commercial banks 10 marks b ABC Ltd is a horticultural company producing flowers. Explain five factors that may influence the choice of a channel for distributing its products. 10 marks 6. A Explain five functions of an office 10 marks b The following transactions relate to TJ Traders for the year ended 31st April 2022 April 1: Received cash from Christine sh. 150 000, receipt No. 0012 2: Paid rent in cash sh. 16 000. 3: Bought goods for sale and paid by cheque sh. 14000. Receipt No 0134 4: Sold goods in cash sh. 45 000, receipt No. 0013 d Tools e Exercise books f ClothingBusiness studies Paper 1 2 www.freekcsepastpapers.com 5: Mwai, a debtor, paid in cash 17000. Receipt No 0014 6: Bought goods worth sh. 60 000 in cash. Receipt No 0456 7: Received a cheque of sh 20,000 in full settlement of a debt of sh.


Receipt No 0014 6: Bought goods worth sh. 60 000 in cash. Receipt No 0456 7: Received a cheque of sh 20,000 in full settlement of a debt of sh. 23000 from Kalunda Receipt No 0015 8: Paid for goods sh. 4,000 cash less 5 cash discount. Receipt No 0432. Required: Prepare TJ Traders cash receipt and cash payment journals and record the above transactions 10 marks Business studies Paper 1 2 www.freekcsepastpapers.com WEITHAGA BUSINESS STUDIES MOCK PAPER ONE 2023 END OF TERM TWO Answer all questions in the space provided. 1. State four external factors that may influence the operation of a business negatively. 4marks 2. Match the following uses with the appropriate office equipment. 4marks Uses Office equipment i. It is a machine that is used for preparing cash receipts ii. It is a machine used for trimming documents in to required shapes and sizes iii. It is a machine that is used for cutting unwanted documents in to tiny pieces to avoid such documents getting into unauthorized people iv. A machine which is used for complex calculations 3. Mention four disadvantages of containerization in transport. 4marks 4. Outline four factors that influence the choice of product in the market. 4marks 5. State four disadvantages of Automated Teller machines ATM 4marks 6. Outline four skills that an individual would develop when learning business studies. 4marks 7. Outline the type of unemployment that has been described by the statements below. 4marks i Unemployment that occurs when people lose jobs and go looking for new ones ii Unemployment that occurs when people are actively looking for jobs at the existing wage rates but cannot get them iii Unemployment that occurs repeatedly at similar times iv Unemployment that occurs when demand for labour declines due to either change in the method of production or a decrease in the supply of goods and services 8. List the four levels of inflation. 4marks 9. State four causes of negative shift in demand curve. 4marks 10. Highlight four ways in which the production activities of firms in a country affects the environment. 4mark 11. State four types of complaints that a consumer organization may receive from consumers. 4marks 12.


4mark 11. State four types of complaints that a consumer organization may receive from consumers. 4marks 12. On 1st January 2020, Njuguna had a capital of shs. 700, cash shs. 200, stock shs. 300, creditors shs. 400 and furnitures of shs. 600. During the month, the following transactions took place; i Sold stock shs. 100 on credit ii Paid creditors by cash shs. 200 iii Borrowed a loan of shs. 400 by cheque Required: Prepare Njuguna s balance sheet after the transactions took place. 4marks 13. A firm wishes to introduce a new product in to the market. Outline four factors that should be considered in choosing an appropriate medium for promotion. 4marks 14. On 1st October 2021, Wambu bought goods on credit quoted at shs. 240,000. Terms of sales were; 20 trade discount and 10 cash discount if payment was made on 29th October 2021. Calculate the amount paid if payment was made on 26th October 2021. 4marks 15. State four negative effects of long chain of distribution to the buyer. 4marks Business studies Paper 1 2 www.freekcsepastpapers.com 16. Highlight four ways in which the balance of payment of a country may be improved. 4marks 17. Given the statements in the table below, indicate the type of entry to be made in the relevant ledger accounts. 4 marks Statement Type of entry i. An increase in revenue ii. A decrease in assets iii. An increase in expense iv. A decrease in liability 18. State the principle of insurance described in the statements given below 4 marks i Restoring the insured s financial position after suffering loss from an insured risk ii Existence of a very close relationship between the loss suffered and the insured risk iii The insurer taking ownership of the remains of the destroyed property after the insured is duly compensated iv Proof that the insured will suffer direct financial loss if property is destroyed- 19. Highlight four ways in which entrepreneurs can observe ethics in the management of their business. 4marks 20. List four essentials of an effective communication 4marks 21.


Highlight four ways in which entrepreneurs can observe ethics in the management of their business. 4marks 20. List four essentials of an effective communication 4marks 21. State the relevant books of original entry in to which information extracted from the source documents given below would be recorded. 4marks Source document Book of original entry i. Incoming invoice ii. Outgoing credit note iii. Incoming receipts iv. Incoming credit notes 22. Highlight four problems encountered in measuring national income using the output approach 4marks 23. Outline four characteristics of public goods 4marks 24. Identify four ways in which goods are prepared for sale in a warehouse 4marks 25. Outline four circumstances under which a firm would be located near the market 4marks Business studies Paper 1 2 www.freekcsepastpapers.com WEITHAGA FORM FOUR BUSINESS STUDIES MOCK PAPER TWO 2023 END OF TERM TWO. Answer any five questions in the space provided. 1. A Explain five reasons why an effective filing system is important in an office. 10 marks b Other than price mechanism, explain five other methods of determining price of a product. 10marks 2. A Explain five problems faced by a public corporations in Kenya. 10 marks b Discuss five factors that Murang a county government may consider before incurring any expenditure. 10marks 3. A Explain five characteristics of a life assurance policy 10marks b On 1st January 2023, Jane traders shs. 110,000 cash in hand and a bank overdraft of shs. 50,000. During the month, the following transactions took place; 2nd Cash sales shs 40,000 3rd Paid postage expense shs 4,100 in cash 5th Received the following cheques from debtors after they had deducted a cash discount of 2 in each case. Kamau shs 2,450, Laban shs 9,604 and Tiu shs 2,744 9th Paid the following creditors in cash and in each case deducted 2 cash discount.


50,000. During the month, the following transactions took place; 2nd Cash sales shs 40,000 3rd Paid postage expense shs 4,100 in cash 5th Received the following cheques from debtors after they had deducted a cash discount of 2 in each case. Kamau shs 2,450, Laban shs 9,604 and Tiu shs 2,744 9th Paid the following creditors in cash and in each case deducted 2 cash discount. Willy shs 2,000 and Amina shs 6,000 13th Cash sale directly banked shs 10,000 16th Took shs 11,000 from the office and deposited it in the business bank account 19th Sold goods worth shs 15,000 on credit to Juma 21st Received shs 18,000 cash from Oman in settlement of his account of shs 20,000 26th Took all cash to the bank leaving shs 4,000 only. Required: Prepare a duly balanced three column cash book. 10marks 4. A Describe five characteristics of a successful entrepreneur. 10marks b Explain clearly five tools of monetary policy used by the central bank to control inflation. 10marks 5. A Describe five channels of distribution that may be followed when importing manufactured goods 10marks b Explain five advantages of government involvement in business activities. 10marks 6. A Chuma steel company limited has located its new factory in a major town in Kenya. Explain five factors that may have attracted the factory to the town. 10marks b The following information was extracted from the books of Praise retail shop for the year ended 31st December, 2022.


Highlight four characteristics of a perfect competitive market. 4 marks 12. The following information relates to Greenland Traders as at 31st December 2018 Rate of stock turnover 3 times. Mark up 20 Opening stock Sh 160,000 Closing stock sh 200,000 Required: Determine; i Gross profit 2 marks ii Sales 2 marks 13. The population of the youth in country X is likely to be 1 of the total population in ten years time. Highlight four challenges this country will face at this point in time. 4 marks 14. Highlight four ways in which transport is important to a business. 4 marks 15. State four circumstances under which a producer would sell his goods directly to the consumer. 4 marks 16. Other than taxes, state four sources of public finance in Kenya. 4 marks 17. Chuo industries want to open a warehouse for her products. Give the management some advice on four factors it should consider in establishing the warehouse. 4 marks 18. Identify four gaps that may create a business opportunity in a market. 4 marks 19. The table below relates to four different businesses, insert the correct values for A, B, C and D. 4 marks ASSETS CAPITAL LIABILITIES 2,310,642 A 486,932Business studies Paper 1 2 www.freekcsepastpapers.com B 40,385 96,483 941,682 31,685 C 3,104,611 D 395,348 20. State four ways in which advertising agencies assist in sales promotion. 4 marks 21. For each of the following transactions, indicate the account to be debited or credited. 4 marks Transaction A C Debited A C Credited a Received discount from Topic suppliers b Allowed discount to shame Traders a Sold furniture to Omari on credit b Took stock worth sh 200 for personal use. 22. Highlight four factors that may cause the demand curve to shift to the right. 4 marks 23. In the spaces provided, state the source document for each of the subsidiary books given below. 4 marks Subsidiary book Source document a Sales journal b Purchases journal c Returns inwards journal d Returns outwards journal 24. Highlight four merits of an open office layout to a business.


In the spaces provided, state the source document for each of the subsidiary books given below. 4 marks Subsidiary book Source document a Sales journal b Purchases journal c Returns inwards journal d Returns outwards journal 24. Highlight four merits of an open office layout to a business. 4 marks 25. Outline four benefits of a trader joining a SACCOs. 4 marks IMENTI SOUTH 565 2 BUSINESS STUDIES PAPER 2 1. A Bright house is launching a new Bookshop for Schools in Kenya. If you are their marketing manager what five factors would you consider when choosing an appropriate media for promoting the bookshop? 10 marks b Highlight five accounting documents used in home trade. 10 marks 2. A Muthomi is an importer of assorted goods from different countries. Explain five advantages he may enjoy while his goods are stored in a bonded warehouse. 10 marks b The following is the trial balance of Mutunga Traders as at 31st December, 2001. DR CR Purchases and sales Returns Discounts Capital Commission Carriage inwards Carriage outwards Debtors and creditors Salaries Bank Cash 700,000 30,000 50,000 39,000 28,000 135,000 400,000 220,000 266,000 94,000 1,600,000 40,000 35,000 862,000 25,000 300,000Business studies Paper 1 2 www.freekcsepastpapers.com Buildings Equipment Stock Jan 1st Jan 2001 600,000 200,000 2,862,000 2,862,000 Additional information: Stock December 31st Decmber 2001 Shs 94,000 Required: i Prepare Trading and profit and loss Account ii Balance sheet as at 31st December 2001 10 marks Business studies Paper 1 2 www.freekcsepastpapers.com 3. A The graph below represents population and output levels of three countries A, B and C. ABCPopulation P Output per capita Q i State the type of population found in each country. Country B 1 mark Country C 1 mark ii Explain four challenges that country C may be facing.


The following balances were extracted from the books of metrol traders for the year ended 31st may 2022 Item kshs sales 500000 purchases 270000 Motor van 350000 Equipment 120000 Debtors 100000 Creditors 60000 Drawings 160000 Capital 490000 Prepare trial balance for metrol trader for the year ended 31st may 2022 12. Outline four conditions under which a warehouse may be considered to operate efficiently. 4 Marks 13. Highlight four circumstances under which an insurance company may undertake re -insurance 4mks 14. Outline four differences between free samples and free gifts as a method of product promotion. 4mks Free gifts Free samples a b c dBusiness studies Paper 1 2 www.freekcsepastpapers.com 15. State four factors that might have led to a shift in supply as shown in the diagram below: 4 marks So S1 Price S1 S0 Quantity 16. Highlight four circumstances under which a firm may be located near the market for its product 4 marks 17. Highlight four differences between oligopoly and perfect competition market 4 marks 18 . State four expenses that are incurred in the process of distributing goods 4marks 19. Highlight four measures that may be taken by the government to curb unemployment. 4marks 20. State four assumptions of the circular flow of income in a closed economy 4marks 21 The following transactions relate to Njuguna traders a 10th July 2021 sold old machine whose book value was Ksh20000 at Ksh 25000 to kimondo traders on credit b 15th July 2021 purchased office equipment for ksh 13000 on credit to kilimani traders required: prepare a general journal to represent above information 4mks 22 Highlight four monetary policies that the government may use to reduce inflation 4mks 23 The following balances were extracted from the books of WANGU traders for the year ended June 2021 Fixed asset Ksh 300000 Current asset Kshs 123700 Creditors 84500 3year loan 125000.


Highlight four measures that may be taken by the government to curb unemployment. 4marks 20. State four assumptions of the circular flow of income in a closed economy 4marks 21 The following transactions relate to Njuguna traders a 10th July 2021 sold old machine whose book value was Ksh20000 at Ksh 25000 to kimondo traders on credit b 15th July 2021 purchased office equipment for ksh 13000 on credit to kilimani traders required: prepare a general journal to represent above information 4mks 22 Highlight four monetary policies that the government may use to reduce inflation 4mks 23 The following balances were extracted from the books of WANGU traders for the year ended June 2021 Fixed asset Ksh 300000 Current asset Kshs 123700 Creditors 84500 3year loan 125000. Determine the net worth of the business as at June 2021 4mks 24 Outline four benefits of trade restrictions to a country 4marks 25 Highlight four purposes of public finance 4mks Business studies Paper 1 2 www.freekcsepastpapers.com GATUNDU SOUTH JOINT EXAM FORM 4 END OF TERM II 2023 565 2 BUSINESS STUDIES PAPER 2 1 a Describe five roles of an office as a center of communication 10 mks b Explain five negative effects of rapid population growth. 10mks 2 a Explain five factors to consider when choosing a product promotion method. 10mks b Explain any five services provided by commercial banks. 10mks 3 a Explain four documents used in home trade that are prepared by the buyer. 8 mks b The following trial balance belongs Gatundu traders as at 30th June 2016 GatunduTradres Trial balance As at 30th June 2016 Dr. Cr.


10mks 3 a Explain four documents used in home trade that are prepared by the buyer. 8 mks b The following trial balance belongs Gatundu traders as at 30th June 2016 GatunduTradres Trial balance As at 30th June 2016 Dr. Cr. Stock 30 06 15 4000 Capital 162,300 Purchase and sales 35,000 70,000 Drawings 6,000 Furniture and fittings 20,000 Motor Vehicle 150,000 Debtors and creditors 8,000 12,000 Returns 2,000 4,800 Discount 800 700 Wages and salaries 15,000 Rent 3,500 . Insurance 2,100 .. Commision 400 .. Bank . 3,000 Cash 6000 252,800 252,800 Required i Prepare a trading profit and loss account and a balance sheet as at 30th June 2016. 12mks 4 a Explain five factors that may influence a firm s decision on the type of goods or services to produce 10Mks b Explain five characteristics of an efficient tax system 10mks 5 a Explain five differences between co-operatives and public limited companies. 10 marks b Explain any five factors that can lead to an increase in the level of national income 10mks 6 a Describe the procedure for obtaining an insurance policy. 10mks Business studies Paper 1 2 www.freekcsepastpapers.com b On 1st September 2012, Juja Enterprises had Sh 55,000 in hand and Sh 250,000 at bank. During the month the following transactions took place: September 2 Cash sales banked sh 35,260 2 Bought stationery in cash sh 4,500 7 Paid Lucy, a creditor sh 94,000 by cheque in full settlement of his account after deducting 6 cash discount.


Highlight four features of perfect competition market 4marks 5. Outline four factors that determine the amount of premiums charged in life assurance 4marks 6. Outline four circumstances in which communication may be ineffective 4marks 7. The following balances were extracted from Ybooks of Kambo Traders for Y year ended 31st Dec 2021 Sales 500000 Purchases 320000 Stock 31 12 21 40000 Debtors 140000 Creditors 90000 Calculate;Business studies Paper 1 2 www.freekcsepastpapers.com a Margin 2marks b Current ratio 1mark c Rate of stock turn over 1mark 8. Outline four functions of money 4marks 9. Identify the office equipment described in each in the following statement below. 4marks Description Equipment Used to make postage stamps impression of the envelops. Used to transmit verbal message Used to record and store information in audios Used to record and store information in audios tapes 10 Outline four ways in which production activities negatively influences human health 4marks 11. Outline four benefits that may be realized when two firms merge 4marks 12. Outline four ways which developing countries like Kenya may benefit from entrepreneurship 4marks 13. Give the names of source document used to record transactions in to following books if original entry. 4marks Book of original entry Source of document Purchase returns book Cashbook Sales journal Cash payment journal 14. Outline four reasons why a cheque may be dishonoured 4marks 15. State the effects of each of the following transactions on the balance sheet totals by writing increase decrease or No effects in each case 4marks TRANSACTIONS EFFECTS Bought machinery on credit Withdraw cash from the business for personal use Purchase stock in cash Paid outstanding loan by cheque 16 Outline four ways through which consumers may be exploited 4marks 17. Outline four negative effects of aging population to an economy 4marks 18. Outline four services offered by agency banking 4marks 19. Outline four types of business activities that are carried out in Kiambu County 4marks 20. Outline four ways which warehousing is useful to a trader 4marks 21. Outline four types of cost incurred by intermediaries in the chains of distribution. 4marks 22.


Outline four ways which warehousing is useful to a trader 4marks 21. Outline four types of cost incurred by intermediaries in the chains of distribution. 4marks 22. Outline four essential elements for effective transport to take place 4marks 23. Outline four ways in which households contribute to National Income of a country 4marks 24. State four unethical practices in product promotion 4marks 25. Highlight four features of land as a factor of production 4marks Business studies Paper 1 2 www.freekcsepastpapers.com CEKENAS ONE EXAM-2023 565 2 BUSINESS STUDIES PAPER 2 1. A Explain five reasons for which businesses should observe ethical practices in their activities. 10mks b Discuss five ways in which the government can reduce unemployment levels in Kenya 10mks 2. A Explain five reasons why government may be involved in business 10mks b Using a well labelled diagram show the effect of a shift of the demand curve from left to right on the equilibrium price and quantity 10mks 3. A Explain five essentials of a good warehouse 10mks b Explain five measures that maybe taken by the central bank of Kenya to increase the amount of money in circulation 10mks 4. A Explain five problems encountered in measurement of national income using the output approach 10mks b Explain five roles played by the stock exchange in a securities market 10mks Business studies Paper 1 2 www.freekcsepastpapers.com 5. A On 1st January 2021.Gutoria Estate had Ksh95000 in hand and a bank balance of Ksh125000 Cr .


A Explain five essentials of a good warehouse 10mks b Explain five measures that maybe taken by the central bank of Kenya to increase the amount of money in circulation 10mks 4. A Explain five problems encountered in measurement of national income using the output approach 10mks b Explain five roles played by the stock exchange in a securities market 10mks Business studies Paper 1 2 www.freekcsepastpapers.com 5. A On 1st January 2021.Gutoria Estate had Ksh95000 in hand and a bank balance of Ksh125000 Cr . During the month the following transactions took place January2021: 3rd cash sales Ksh 9000 directly banked 5th, purchased gods worth Ksh 19500 by cash 12th, deposited Ksh 25000 into business bank account from private source 14th,Obura, a debtor settled his account of Ksh 15000 by cash less 5 cash discount 17th paid James Ksh 3900 by cheque in full settlement of his account less 2.5 cash discount 20th, sold goods worth Ksh 13500 to Kim on credit 23rd settled Kamau s account of Ksh 15000 by a cheque of 13500 24th received a cheque of 28800 from Lee having allowed cash discount of 4 27th paid salaries by cheque 36000 30th Lees cheque was dishonored 31st banked all cash Prepare a duly balanced three column cash book 10mks b Explain five factors that one should consider when choosing office equipment 10mks 6. A The following trial balance has extracted from the books of Faida traders as at 31 12 2020.


4 marks 19. State the characteristic of human want that match the descriptions given below. 4 marks a Satisfaction of one want automatically leads to creation of another b Some human wants are experienced by all human beings c Human wants can not be fully satisfied. D After some wants are satisfied they recur. 20. The following balances were obtained from the books of sunset traders as at 30th June, 2004. Stock 1st July 2003 45,000 Purchases 159,000 Sales 235,000 Stock 30 June 2014 33,000 Capital 75,000 Return outwards 3,000 Operating expenses 13,000 Calculate: i Stock turnover rate. 2 marks ii Return on capital. 2 marks 21. Highlight four reasons why the Kenya government encourages entrepreneurship in the country. 4 marks 22. Distinguish the following types of goods as used in production. I Producer goods and consumer goods. 2 marks ii Intermediate goods and finished goods. 2 marks 23. Listed below are a set of transactions. In each case state whether the transaction will increase, decrease or have no effect on capital. 4marks Transaction Effect a Additional cash invested by the owner. B Receiving cash from a debtor c Bought goods on creditBusiness studies Paper 1 2 www.freekcsepastpapers.com d Owner takes some stock for own use 24. Mention four benefits that may be enjoyed in a country that is experiencing over- population 4 marks 25. Identify the source documents used to record the following transactions in the books of original entry. 4mks Transaction Source document a Credit purchases b Sales returns c Cash sales d Cash purchases LUGARI CONSTITUENCY JET EXAMINATION 565 2 BUSINESS STUDIES JUNE 2023- 2 HRS 30 MINUTES 1. A Explain five money transfer facilities offered by commercial bank to its customers. 10mks b Explain five principles of public expenditure. 10mks 2. A Explain five advantages that may accrue to a country that engages in international trade. 10mks b Explain five factors that are likely to lead to high birth rate in Kenya. 10mks 3.


A Explain five advantages that may accrue to a country that engages in international trade. 10mks b Explain five factors that are likely to lead to high birth rate in Kenya. 10mks 3. A By the aid of a diagram,explain excess demand and excess supply 10mks . B Discuss any five circumstances under which an insured may not be compensated in the event of a loss. 10mks 4. A Highlight five factors that may contribute to demand pull inflation. 10mks b On March 1st 2017,Martha had cash in hand sh 87,000 and cash at bank sh 250,000. During the month,the following transactions took place. March 2: Cash sales sh 60,0000 3: Paid salaries sh 101,500 by cheques 7: Received a cheque of sh 76,000 from Henry,after allowing him cash discount of 5 13: Bought office furniture by cheque shs 86,000 17: Settled Maria s account for shs34,200 in cash having deducted shs 800 cash discount 20: Received a cheque for shs 165,000 in respect of cash sales 22: Paid wages shs 25,000 in cash. 24: Withdrew shs 32,000 from the bank for office use. 25: Withdrew shs 4,000 cash for personal use. 29: Received shs 17,000 cash from Alvin in settlement of his account less shs 1,000 cash discount 31: Deposited all the cash into the bank except shs 24,000 Prepare three column cash book duly balanced 10mks 5. A Explain five benefits of filing office documents to an organization 10mks b A trader want to place an order to his supplier. Explain five factors that he should consider before choosing the appropriate mean of communication. 10mks Business studies Paper 1 2 www.freekcsepastpapers.com 6. A Describe four sources of monopoly power in an economy 8 marks b The following trial balance was extracted from the Ledgers of Ashley s electronics business on 31st December 2020. Ashley s Electronics Trial Balance As at 31st December 2020 TITLE OF ACCOUNT DEBIT Dr SHS.


10mks Business studies Paper 1 2 www.freekcsepastpapers.com 6. A Describe four sources of monopoly power in an economy 8 marks b The following trial balance was extracted from the Ledgers of Ashley s electronics business on 31st December 2020. Ashley s Electronics Trial Balance As at 31st December 2020 TITLE OF ACCOUNT DEBIT Dr SHS. CREDIT Cr SHS. Gross Profit Equipment Motor vehicle Electricity Carriage out Rent Discount Salaries Commission Insurance Cash at bank Debtors ABC Bank loan Capital Creditors 90,000 250,000 12,000 3,300 50,000 8,000 12,900 15,000 100,000 36,000 177,000 10,700 5,000 100,000 250,000 34,500 TOTAL 577,200 577,200 Stock on 1st January 2020 was valued at shs. 77,000. Prepare: i Profit and Loss account for the year ended 30th April 2020. 6 marks ii A balance sheet as a 30th April 2020. 4 marks iii Calculate, 2marks a Working capital b Capital EmployedBusiness studies Paper 1 2 www.freekcsepastpapers.com SUKELLEMO PREMOCK TERM 1 565 2 BUSINESS STUDIES PAPER 2 1. A Explain five factors that may promote entrepreneurship in Kenya. 10 marks b Explain 5 services that commercial banks offer to their customers. 10 marks 2. A On 1st September 2018. Kwale traders had the following balances. Cash sh. 55 000 Bank sh. 250.000 CR During the month, the following transactions took place September 2nd cash sales banked sh. 535,260 3rd Bought ribbons in cash sh. 4,500 8th Paid Nyongesa, a creditor sh. 94,000 by cheque in full settlement of his account after deducting 6 cash discount. 12th Received a cheque for sh. 58,800 from Winnie after allowing her cash discount of sh. 1,200 14th Purchased goods worth sh. 10,000 on credit from Thika Traders.


58,800 from Winnie after allowing her cash discount of sh. 1,200 14th Purchased goods worth sh. 10,000 on credit from Thika Traders. 15th Paid salaries sh. 34.000 in cash. 25th Withdrew sh. 50,000 from bank for office use. 28th Anyango, a debtor. Paid her account of sh. 75,000 by cheque less 10 cash discount. 30th Deposited all the cash into the bank except sh. 13,700 Required: Prepare a three column cashbook as at 30th September, 2018. 10 marks b Explain five factors to consider when choosing office equipment. 10marks 3. A Explain five measures that the government of Kenya has put in place to protect consumers from unscrupulous business practices. 10mks b Describe five types of unemployment to an economy and give cause of each. 10marks 4. A Explain five channels of distribution that a trader may use to import goods. 10mks b Explain five factors that influence the choice of an appropriate means of transport 10mks 5. A Using a well labelled diagrams, distinguish between movement along the supply curve and a shift in the supply curve. 10mks b Explain five services offered by wholesalers to the retailers. 10mks 6. A Explain 5 disadvantages that a country may suffer out of international trade. 10mks Business studies Paper 1 2 www.freekcsepastpapers.com b The following information relates to Kabarnet Traders.


4 marks 7. State four reasons for consumer protection. 4 marks 8. The following information relates to Karibu traders for the year ended 31st December, 2020. Details Kshs Fixed Assets 1,840,000 Current Assets 400,000 6 year bank loan 600,000 Current Liabilities 150,000 Determine owner s capital using the above information. 4 marks 9. State four uses of a general journal. 4 marks 10. State the level of production involved in each of the following occupations. Occupation Level of production a Road building b Farming c Teaching d Food processingBusiness studies Paper 1 2 www.freekcsepastpapers.com 11. The diagram below represents the relationship between population and income per capita. P axis O Q S axis State what is represented by P and S axes and Letter R and Q. 4 marks a P axis b S axis c R d Q 12. Highlight the unit of carriage associated with the following means of transport. 4 marks Pipeline transport Human porterage Water transport Cartage transport 13. State four limitations of national income statistics as a measure of the standards of living. 4 marks 14. Outline four merits of indirect tax. 4 marks 15. State four difficulties faced in the satisfaction of human wants. 4 marks 16. Highlight four benefits to a business that uses E-mail in communication. 4 marks 17. Highlight four uses of a business plan to a business man. 4 marks 18. Highlight four ways in which a firm may differentiate its products from those of its competitors. 4 marks 19. Outline four qualities of a successful salesperson. 4 marks 20. The following information relates to the business of Watamu Enterprises. Opening stock Ksh 28,000 Closing stock Ksh 42,000 Rate of stock turn over 4 times Mark up 25 From the above information, determine i Cost of goods sold. 2 marks ii The gross profit. 2 marks 21. Outline four benefits to a business that uses its own warehouse. 4 marks RBusiness studies Paper 1 2 www.freekcsepastpapers.com 22.


10 marks 3 a The following trial balance was extracted from the books of Kibe Limited on 31st December 2016. Details Dr Cr Capital 800,000 Opening stock 200,000 Purchases 680,000 Returns 50,000 80,000 Discount 80,000 45,000 Carriage inwards 42,000 Debtors and creditors 200,000 105,000 Sales 1,200,000 Motor vehicles 750,000 Furniture and fittings 250,000 Rent 50,000 Bank overdraft 60,000 Carriage outwards 30,000 Additional information: closing stock was valued at Ksh 80,000 Required: Prepare a trading profit and loss account. 10 marks b Explain five importance of filing documents in an office. 10 marks Business studies Paper 1 2 www.freekcsepastpapers.com 4 a Explain five negative effects of inflation on the economy of a country. 10 marks b Julian runs a factory and has employed fifty workers. Explain five reasons why it would be beneficial to assign each worker a specific job in production. 10 marks 5 a Explain five principles of co-operative societies. 10 marks b Kenya is looking forward to the realization of vision 2030. Explain five problems that may be encountered during implementation. 10 marks 6 a Explain five benefits of a business to the society. 10 marks b On 1st March 2021, Omino had shs 40,000 in hand and shs 120,000 at bank. During the month, the following transactions took place: March 2: paid rent shs 20,000 by cheque. March 4: cash sales banked shs 42,000. March 5: Kimani a debtor settled his account of shs 12,000 in cash less 5 cash discount. March 7: Paid wages shs 8,000 in cash. March 12: Withdrew shs 10,000 from bank for office use. March 18: Paid Borabu,a creditor shs48000 in full settlement of his account after deducting 4 cash discount. March 23: Received a cheque for shs 19,000 from Salome after allowing her a cash discount of shs 1000.


State the meaning of the following terms as used in Business. 4mks a Mergers b Holding companies c Franchising d Cartel 24. State four ways the central bank of a country may use to reduce money in circulation within a country. 4mks 25. The information below relates to R.S LTD sh Sales 20,000 Cost of sales 15,000 Average stock 6,000 Expenses 10 of sales Calculate i Gross profit markup 1mk ii Gross profit margin 1mk iii Rate of stock turn over 1mk iv Net profit 1mk MURANG A EXTRA COUNTY SCHOOLS MECS CLUSTER EXAMINATION BUSINESS STUDIES PAPER 2- 565 2 1. A Explain five reasons why people prefer to start a partnership business. 10 marks b Explain the importance of business studies to the society. 10 marks 2. A Illustrate using a diagram the circular flow of income in a two-sector economy and give three assumptions 10 marks Business studies Paper 1 2 www.freekcsepastpapers.com b Explain five distinguishing features between a current account and a savings account 10 marks 3. A Explain five reasons why hypermarkets are becoming popular in Kenya today 10 marks b On 1st May, 2020, Kihenjo Limited had cash in hand sh. 178,000 and a bank overdraft of sh. 23,400. During the month, the following transactions took place. 2020 May 3: Cash sales sh. 16,500 paid direct to the bank 4: Bought goods for sh. 15,000 and paid by cheque 6: Cash sales sh.50, 000 9: Received a cheque sh. 76,500 from Mwikali 12: Bought goods sh.10, 000 on credit from Juma 13: Paid insurance premium sh.16, 000 in cash 14: Paid Otieno by cheque sh. 9, 700 in full settlement of his account having deducted a 3 cash discount 16: The owner took sh. 1,000 cash from the business to pay hospital bill for spouse 20: Withdrew sh. 30, 000 for office use. 23: Received a cheque of sh.


1,000 cash from the business to pay hospital bill for spouse 20: Withdrew sh. 30, 000 for office use. 23: Received a cheque of sh. 23, 750 from Kim in full settlement of his account less 5 cash discount 25: Paid wages of shs. 20, 000 cash 26: The cheque received from Kim was dishonoured 30: Banked all the cash except sh. 3, 000 Required: A duly balanced three-column cash book 10 marks 4. A Describe five channels that can be used when exporting Agricultural products. 10 marks b Explain any five circumstances under which a business may prefer open office layout 10 marks 5. A Describe the procedure of making an insurance claim. 10 marks b Kenya has been experiencing a challenge of unemployment. Explain five measures that the government has taken in her effort to curb the unemployment problem. 10 marks 6. A Ouma is a businessman who is intending to increase his volumne of sales through promoting his products. State and explain any four factors that he must put into consideration before deciding on the method that he should use. 8 marks b The following trial balance relates to Uchumi Traders as at 31st December, 2022. Uchumi Traders Trial Balance As at 31st December, 2022 Particulars Dr. Shs Cr. Shs Stock on 1st Jan. 2022 Purchases and Sales Returns Debtors and creditors Premises Machinery Fixtures and fittings Carriage outwards Wages and salaries Discounts Commissions 60,000 400, 000 20, 000 65, 000 540, 000 200, 000 100, 000 8,000 30,000 25,000 16, 000 580, 000 50,000 40,000 32, 000 14, 000Business studies Paper 1 2 www.freekcsepastpapers.com Cash in hand Capital 70,000 818, 000 1, 534,000 1,534,000 Additional Information: Closing stock was valued at sh.


Shs Cr. Shs Stock on 1st Jan. 2022 Purchases and Sales Returns Debtors and creditors Premises Machinery Fixtures and fittings Carriage outwards Wages and salaries Discounts Commissions 60,000 400, 000 20, 000 65, 000 540, 000 200, 000 100, 000 8,000 30,000 25,000 16, 000 580, 000 50,000 40,000 32, 000 14, 000Business studies Paper 1 2 www.freekcsepastpapers.com Cash in hand Capital 70,000 818, 000 1, 534,000 1,534,000 Additional Information: Closing stock was valued at sh. 70, 000 Required: i Trading profit and loss account for the period ended 31st December, 2022 8 marks ii Balance sheet as at 31st December, 2022 4 marks Business studies Paper 1 2 www.freekcsepastpapers.com BOKAKE FORM FOUR CLUSTER EVALUATION TERM II, 2023 565 1 BUSINESS STUDIES PAPER 1 JULY AUGUST 2023 1. List four characteristics of an entrepreneur. 4 marks 2. Outline four circumstances when a company can be dissolved. 4 marks 3. Classify using a tick whether the following resources are natural, manmade or human. 4 marks Resource Natural Man made Human a. Teacher b. Oil deposits c. Coral reef d. A building 4. The following balances were extracted from the books of Mbolea Merchants as at 31st August 2021. Cash. Sh. 17,000 Bank. Sh. 53,000 Sales. Sh.200, 000 Purchases. Sh. 120,000 Salary and wages sh. 80,000 Bank overdraft sh. 20,000 Creditors Sh. 35,000 Prepare a trial balance as at 31st August 2021. 5 marks 5. Mention four characteristics of land as a factor of production. 4 marks 6. State the wholesaler described below. 4 marks a. A wholesaler who deal with beans, maize, millet and sorghum b.


State the wholesaler described below. 4 marks a. A wholesaler who deal with beans, maize, millet and sorghum b. A wholesaler who sell goods in Nyeri, Muranga and Kiambu c. A wholesaler who buy cabbages in Kinangop and sell them to other wholesalers and retailers in Nairobi d. A Wholesaler who sell baby clothes only 7. State four factors that may lead to a decrease in demand for jackets. 4 marks 8. Highlight four features of itinerant traders. 4 marks 9. State four types of advertising. 4 marks 10. Outline four causes of a business failure. 4 marks 11. Give four limitations of a trial balance. 4 marks 12. State four accounts used to record movement of stock. 4 marks 13. Highlight four reasons why a bonded warehouse is important to the government. 4 marks 14. State four characteristics of direct production. 4 marks 15. Highlight four types of unemployment. 4 marks 16. State three ways in which government regulates businesses. 3 marks 17. Matatus are very popular in Kenya today. State four advantages of matatus. 4 marks 18. List four essentials of effective communication. 4 marks 19. Highlight four characteristics of life assurance policy. 4 marks 20. Outline the first four steps followed during personal selling. 4 marks 21. State four types of business activities. 4 marks 22. State four characteristics of goods. 4 marks 23. List four uses of a general journal. 4 marks 24. State four types of product markets. 4 marks 25. Highlight four channels for distributing locally manufactured goods. 4 marks Business studies Paper 1 2 www.freekcsepastpapers.com BOKAKE FORM FOUR CLUSTER EVALUATION TERM II, 2023 565 2 BUSINESS STUDIES PAPER 2 JULY AUGUST 2023 1. A Explain five negative effects of inflation. 10 marks b Explain five factors that limit effective communication in a business. 10 marks 2. A Explain five factors that may be considered morally right when carrying out business. 10 marks b Explain five challenges that may face a firm due to its expansion.


10 marks 2. A Explain five factors that may be considered morally right when carrying out business. 10 marks b Explain five challenges that may face a firm due to its expansion. 10 marks 3. A Explain five types of indirect taxes that are levied in Kenya. 10 marks b The following transactions relate to Koko Traders for the month of May 2021: May 2: Sold goods on credit to Chui shs.12,000 and Jane shs.16,000 May 8: Bought goods on credit from Shah Traders shs.40,000 May 12: Chui returned goods worth shs.2,000 May 15: Purchased goods on credit from Koki sh.34,000 and Peter shs.31,050 May 20: Goods worth sh.6,000 were returned to Shah traders and goods worth sh. 3,000 to Koki May 23: Goods sold on credit to Chui sh.8,000, Tom sh. 11,000 and Joseph shs.13,000 May 25: Bought goods on credit from Koki shs.17,000 and Shah Traders shs.25,000. May 27: Goods returned by Boyo shs.2,000 May 30: Purchased a motor car on credit worth sh.500,000 from KVM Prepare the relevant journals and balance them off. 10 marks 4. A Explain five benefits advertising to the business. 10 marks b Explain five external business environment that may positively affect the operation of the business. 10 marks 5. A Explain five advantages of privatization of state corporations. 10 marks b Explain five positive implications of a country whose population is mainly dominated by the youthful population. 10 marks 6. A The following Trial Balance was extracted from the books of Kamau Traders as at 31st December 2020.


From the following list of items, classify them to their internal or external business environment by ticking 4mks Item Internal External i Invested funds ii Technology applied iii Employees iv Cultural factors v Tools vi Entrepreneur vii Government laws and regulation viii Inflation 15. The following incorrectly prepared trial balance belongs to Janai Traders as at 30th October 2022. Prepare a correct one. 4mks Dr sh Cr sh Capital 149,400 Debtors 45,300 Insurance 2,000 Fixtures 48,000 Stock 30 10 22 6,000 Premises 160,000 Creditors 21,900 ICDC Loan 90,000 227,300 295,300 16. The table below shows the age distribution of a country. Age Percentage 0 15 16 55 56 and above 51 23 21 State four negative economic implications of this age distribution to a country. 4mks 17. The following features relate to warehousing. Indicate the most suitable type of warehouse described. 4mks i Used to store locally produced goods until excise duty is paid. Ii Mostly situated in entry points and are available at a fee. Iii Warehouse used to store non-dutiable goods originating from within or outside the country. Iv Warehouse designed to suit one s particular needs. 18. Highlight four advantages a sellers have by changing from counter service to self-service for customers. 4mks 19. Outline four current trends in the transport sector in Kenya. 4mks 20. The Onchonga Traders had the following information for the year ended 31st December 2022. Shs. Prepaid insurance 3,000 Debtors 2,000 Premises 50,000 5 year Bank loan 20,000 Creditors 5,000 Furniture 7,000 Stock 10,000 Cash at hand 4,000 Prepare a balance sheet as at 31st December 2022. 4mks Business studies Paper 1 2 www.freekcsepastpapers.com 21. Highlight four measures consumers may take to satisfy their unlimited wants using limited resources. 4mks 22.


Outline four ways that this function is achieved. 4 marks 11. Identify the relevant participant in each of the statements given below in a two-sector economy. 4 marks Statement Participant a Payment for goods and services. B Sale of factors of production. C Payment for factors of production. D Sale of goods and servicesBusiness studies Paper 1 2 www.freekcsepastpapers.com 12. The following balances were extracted from the books of Kangari traders on 31st December 2022. Items shs Capital 500,000 Buildings 220,000 Furniture 25,000 Motor van 300,000 Discount received 18,000 Commission allowed 36,000 Bank 120,000 Bank loan 180,000 Debtors 100,000 Creditors 63,000 Using the above information, prepare Kangari traders trial balance on the 31st December 2022. 5 marks 13. State the type of unemployment relating to each of the following descriptions. 4 marks a Caused by alternating trading patterns occurring at similar times b Arises where workers have more skills and higher qualifications than the job requirement . C Occurs when some of the people who are unemployed are not capable of holding down a permanent job by virtual of some physical or mental disability d Arises when people are unwilling to take up jobs due low pay . 14. Outline one circumstance under which each of the following documents may be used by a trader. 4 marks a Debit note b Invoice .. .. c Credit note ... .. d Catalogue .. 15. State four benefits of a bonded warehouse to the government. 4 marks 16. Outline four circumstances in which the government may get involved in business activities. 4 marks 17. Give four reasons for the increased use of mobile phones in banking. 4 marks 18. Outline four reasons why a firm may remain small. 4marks 19. List four levels of inflation. 4 marks 20. Name the documents described by the statements given below as used in international trade. 4 marks a Request of payment for goods before goods are delivered b Shows ownership or title of goods imported ..


4 marks 20. Name the documents described by the statements given below as used in international trade. 4 marks a Request of payment for goods before goods are delivered b Shows ownership or title of goods imported .. c Shows the country of manufacture of goods imported d Shows that the person or firm has been granted permission to import the goods indicated on it 21. Outline four circumstances that may lead to the existence of a business opportunity to be exploited by the entrepreneur 4 marks 22. The following transactions were extracted from the books of Githima traders for the month of March 2022. 4 marks March 12: Purchased goods on credit worth kshs 300,000 from Karega traders. March 28: Sold goods on credit worth kshs 530,000 to Kigumo traders. Record the above transactions in the relevant ledger accounts. 23. John completed his high school learning last year. Mention four types of small-scale retail businesses that he can engage in that would not require him to have a physical building structure. 4 marks Business studies Paper 1 2 www.freekcsepastpapers.com 24. Kwetu traders have realised that their sales have been on the decline. Mention four factors that the firm should consider when deciding on the method to use for promoting its products. 4 marks 25. Excessive public borrowing has been blamed as one of the factors contributing to economic instability in Kenya. State four other sources through which the Kenyan government can raise revenue. 4 marks KIGUMO MOCK CLUSTER FORM 4 TERM 2 2023 EVALUATION 565 2 BUSINESS STUDIES PAPER 2 1 a Explain five benefits of division of labour to an organization. 10mks b Explain five benefits that a private limited company would get by converting to a public limited company. 10mks 2. A Explain five characteristics of property insurance. 10mks b Explain five services that the Central Bank of Kenya may offer to commercial banks. 10mks 3. A Explain five differences between an open office and an enclosed office. 10mks b The following balances were provided by Nkatha traders on 30th June 2021. Kshs.


A Explain five differences between an open office and an enclosed office. 10mks b The following balances were provided by Nkatha traders on 30th June 2021. Kshs. Capital 150,000 Carriage inwards 9,100 Carriage outwards 17,500 Cash at Bank 28,500 Cash in Hand 3,200 Creditors 35,000 Debtors 16,500 Discounts Allowed 5,400 Discounts Received 2,700 Drawings 31,400 Furniture and Fittings 58,500 Motor Vehicles 65,200 Office machines 7,500 Purchases 228,200 Rates and Insurance 11,600 Returns Inwards 9,900 Returns Outwards 16,400 Sales 362,700 Wages and Salaries 41,800 Additional information: Opening and closing stock were valued at kshs. 32,800 and kshs. 29,500 respectively. Required; Prepare Nkatha Traders Trading, Profit and Loss Account for the period ending 30th June 2021. 10mks 4. A Explain five circumstances that would influence a producer to use wholesalers in distributing his products. 10mks b Explain five advantages of indirect tax in raising revenue for the government. 10mks 5. A Explain five situations under which an increase in price of a commodity may lead to an increase in demand for the same commodity. 10mks Business studies Paper 1 2 www.freekcsepastpapers.com b Explain five benefits that a firm may enjoy by preparing a business plan. 10mks 6. A Explain five challenges that may be experienced by a country whose population is made up of a large proportion of young people. B The following information relates to Liam Enterprises: Details Kshs.


10mks 6. A Explain five challenges that may be experienced by a country whose population is made up of a large proportion of young people. B The following information relates to Liam Enterprises: Details Kshs. Stock 1st January 2021 430,000 Purchases 930,000 Sales 1,155,000 Carriage outwards 25,000 Carriage inwards 10,000 Returns outwards 20,000 Returns inwards 30,000 General expenses 100,000 Insurance 25,000 Stock 31st December 2021 470,000 Calculate: i Turnover 1mk ii Rate of Stock Turnover 3mks iii Mark up 2mks iv Margin 2mks v Net profit 2mks MOKASA 1 EXAMINATION 565 2 BUSINESS STUDIES PAPER 2 1. A. Explain five factors that promote entrepreneurial activities in a country. 10marks b. Explain five measures that the Central Bank of Kenya can put in place so as to reduce the amount of money in circulation. 10marks 2. A. Explain five uses of national income statistics. 10marks b. Explain five differences between public limited companies and partnerships forms of business units. 10marks 3. A. Explain five factors to be considered when selecting office equipment to buy. 10marks Business studies Paper 1 2 www.freekcsepastpapers.com b. On 1st March 2016, Karani Traders had cash in hand sh.100,000 and cash at bank sh.150,000. The following transaction took place during the month. March 2nd: 4th: 5th: 8th: 12th: 20th: 25th: 28th: 31st: Bought goods in cash sh.15,000. Paid salaries by cash sh.75,000. Received the following cheques from debtors after allowing a 2 discount in each case Wamburi sh.9800 and Wang ondu sh.19,600. Paid the following accounts by cheque in each case deducting a 5 discount Wang ombe sh.30,000, Wanjohi sh.12,000. Bought office machinery by cheque sh.50,000.


Arises out of a mismatch between the skills possessed by potential employees and the location of the jobs available. D. Arises when people are unwilling to take up jobs due to low pay. 12. Name any four documents that may be required by the registrar of companies in order to register a public limited company 4 Mks 13. Highlight four circumstances under which the capital of a business may change. 4 marks 14. Outline four areas where a consumer needs protection. 4 marks 15. Identify the type of advertising described by each of the following : 4marks Description Type of advertising a Meant to promote a company's name or image : b Uses popular personalities to advertise c Aims at promoting the sales of a new or existing product : d Aims at giving full information about a product 16. Highlight four functions of money. 4 marks 17. State four essential elements of transport. 4 marks 18. The participants in a two sector economy are households and firms. Identify the relevant participant in each of the statements given below. 4mks Statement Participant a Payment for goods and services. B Sale of factors of production. C Payment for factors of production. D Sale of goods and services. 19. Outline four features of capital as a factor of production. 4 marks 20. Outline four reasons why a firm would prefer to locate near the market of its products 4 marks 21. Highlight four reasons why reasons why Business Studies should be offered as a career subject in secondary schools. 4 marks 22. Outline four circumstances under which one may use audio-visual communication. 4 marks 23. On 1st July 2012, Mara traders had sh 6,000 cash in hand and bank overdraft of sh 2,000. During the month the following transaction took place. July 2: Received cheque from debtor of sh 50,000 July 5: Paid rent sh 2,000 cash July 15: Withdrew sh 5,000 for personal use July 25: Banked all the cash except sh 1,000 Required; prepare Mara Traders two column cash book. 5 marks Business studies Paper 1 2 www.freekcsepastpapers.com 24. The following diagram shows a shift in supply curve.


July 2: Received cheque from debtor of sh 50,000 July 5: Paid rent sh 2,000 cash July 15: Withdrew sh 5,000 for personal use July 25: Banked all the cash except sh 1,000 Required; prepare Mara Traders two column cash book. 5 marks Business studies Paper 1 2 www.freekcsepastpapers.com 24. The following diagram shows a shift in supply curve. State four factors that many have led to such a shift 4mks 25. The following information was obtained from the books of Abdi Enterprises as at 31st December, 2017. Shs Sales 500,000 Opening stock 40,000 Mark-up 25 Rate of stock turn-over 5 times Calculate; a Cost of sales 2 marks b Closing stock 2 marks MJET FORM 4 SERIES TERM 1 2023 565 2 BUSINESS STUDIES PAPER 2 1. A. Explain the five components of business studies. 10mks b. It has been the will of the government of Kenya to create 500,000 jobs per year. Explain five reasons which have hindered the achievement of this goal. 10 marks 2. A. Discuss five causes of breakdown in communication. 10mks b. Explain five factors that may lead to a decline in supply of Tea in Kirinyaga County. 10 marks 3. A. Discuss five ways the Kenyan economy benefits from indirect production. 10mks b. The following information relates to Baraka traders. SS1 S0S1 SS0 SS0Business studies Paper 1 2 www.freekcsepastpapers.com BARAKA TRADERS TRIAL BALANCE AS AT 31 12 2012 Details Dr. Shs. Cr.


4mks Activity Utility a Carpentry b Selling bread to students c Warehousing of goods imported d Carriage of cargo to the market 11. The following are policies issued under marine insurance, fleet policy composite policy, voyage policy, time policy. Identify the policy that suits the description listed below. Description Marine policy a Covers a ship within a specified period of time b Covers a ship on a particular journey c Different insurers covers a ship for the same d Covers many vessels against losses under one policyBusiness studies Paper 1 2 www.freekcsepastpapers.com 12. This is Mutegi s demand schedule for bread in a week. Price per loaf shs No. Of loaves demanded 30 1 20 2 15 4 12 6 10 8 5 12 1 20 Required: Draw the demand curve of Mutegi s bread for a whole week. 4mks 13. The following information was extracted from the books of Jupiter Traders Rate of stock turnover 3 times Mark up 20 Opening stock shs 160 000 Closing stock shs 200 000 Required: i Gross profit 2mks ii Sales 2mks 14. Outline four business ethics that a trader should observe when dealing with customers, employees, and other businesses. 4mks 15. Highlight four reasons why the government requires businesses to obtain licences. 4mks 16. The following information was obtained from the books of Jakayo Traders as at 1st July 2010. Shs Furniture 20 000 Stock 8 000 Creditor 7 000 Cash bank 12 000 Long term loan 10 000 Prepare Jakayo s balance sheet as at 1st July 2010. 4mks 17. State four circumstance under which cash with order is mostly practiced. 4mks 18. Highlight four reasons why a producer of goods may use intermediaries to distribute his goods. 4mks 19. Outline four tools of monetary policy that government may use to reduce excess money in circulation. 4mks 20. Highlight four benefits that would accrue to a firm located near existing firms. 4mks 21. Highlight four circumstance under which personal selling may be used as a strategy in product promotion.


Highlight four benefits that would accrue to a firm located near existing firms. 4mks 21. Highlight four circumstance under which personal selling may be used as a strategy in product promotion. 4mks 22. Give four measures that a government may take to reduce the mortality rate in a country. 4mks 23. Highlight four benefits of using electronic filling system in an office. 4mks 24. Give four factors that limit use of containers as a method of transporting goods in a developing country. 4mks 25. Give four factors that influence the level of national income. 4mks Business studies Paper 1 2 www.freekcsepastpapers.com CHOGORIA - MURUGI 565 2 BUSINESS STUDIES PAPER 2 1. A Explain five factors that encourage entrepreneurial development in Kenya. 10mks b Highlight five characteristics of an efficient tax system. 10mks 2. A Dr Walden would like to pass a message to a firend. Explain five factors he is to consider in choosing the most appropriate means of communication to use. 10mks b Describe any five source of document that a business may have access to. 10mks 3. A Explain five benefits of direct production. 10mks b The following information relates to Maralal Traders for the month of May 2014. May 1: Balance brought forward Cash shs 180,000 Bank shs 450,000 Cr 3: received a cheque of 1,500,000 from Mpasha, a debtor 7: Cash sales shs 280,000 11: Jolloimat, a creditor of shs 600,000 was paid by cheque of sh 400,000 and the balance by cash 14: Received commission in cash shs 150,000 17: A debtor, Leteipa, paid his account of 185,000 by cheque less 2 cash discount. 19: Paid the following expenses by cheque: Rent shs 75,000 Electricity shs 32,000 Water shs 25,000 21: Withdrew shs 100,000 from bank for personal use.


10mks b The following information relates to Maralal Traders for the month of May 2014. May 1: Balance brought forward Cash shs 180,000 Bank shs 450,000 Cr 3: received a cheque of 1,500,000 from Mpasha, a debtor 7: Cash sales shs 280,000 11: Jolloimat, a creditor of shs 600,000 was paid by cheque of sh 400,000 and the balance by cash 14: Received commission in cash shs 150,000 17: A debtor, Leteipa, paid his account of 185,000 by cheque less 2 cash discount. 19: Paid the following expenses by cheque: Rent shs 75,000 Electricity shs 32,000 Water shs 25,000 21: Withdrew shs 100,000 from bank for personal use. 24: Paid cash shs 133,280 to Kinai after deducting a cash discount of 2 25: Received a cheque of sh 200,000 from Kiyapi, a debtor 28: Paid salaries shs 120,000 by cheque 31: Banked all cash except shs 50,000 Required: Record the above transactions in a three column cash book. 10mks 4. A Explain five differences between private limited companies and partnerships forms of business units. 10mks b Explain clearly with aid of a diagram the change of equilibrium as a result of increase in supply of a commodity. 10mks 5. A Explain five challenges that an underpopulated country may experience. 10mks b Explain five measures that a wholesaler would take to ensure smooth running of his warehouse. 10mks Business studies Paper 1 2 www.freekcsepastpapers.com 6. A Highlight four circumstances under which a cheque may be dishonoured.


10mks b Explain five measures that a wholesaler would take to ensure smooth running of his warehouse. 10mks Business studies Paper 1 2 www.freekcsepastpapers.com 6. A Highlight four circumstances under which a cheque may be dishonoured. 8mks b The following trial balance related to Kimani;s business as at 31st December 2012 DR SHS CR SHS Stock on 1st January 2003 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 Cash in hand 70,000 Capital 818,000 1,534,000 1,534,000 Required: a Prepare a trading profit and loss account for the period ended 31st December 2012 and a balance sheet as at that date if the closing stock was worth shs 70,000 12mks MURANG A SOUTH 565 1 END OF TERM ONE EXAM 1. State four communication room equipment. 4 marks 2. Classify the following accounts as either personal, impersonal or private. 4 marks a Furniture account- b Drawings account- c Owino s account - d Rent income account - 3. State any four clauses that are contained in a memorandum of association. 4 marks 4. Outline four means of payment used by commercial banks to transfer money. 4 marks 5. Mention four features which qualify food as a primary want. 4 marks 6. Highlight four characteristics of a monopolistic competitive market. 4 marks 7. Outline four disadvantages of water transport. 4 marks 8.


Outline four reasons why SafaricomCompany Limited is spending heavily on advertisement despite the fact that their customers have knowledge of their products. 4 marks 18. Name the basic concept in population described in the statements given below. A Population size that is adequate for the full utilization of available resources in the country. B The average number of births per one thousand women in a year. C When a country is experiencing higher death rates than birth rates. D When a bigger proportion of the population is comprised of people who are above 55 years. 19. State four expenses that are incurred in the process of distributing goods. 4 marks 20. Outline four features of multiple stores. 4 marks 21. Outline four items that are considered when measuring national income using the expenditure method. 4 marks 22. Outline four benefits of a public warehouse. 4 marks Date Details Folio Dr CrBusiness studies Paper 1 2 www.freekcsepastpapers.com 23. Highlight four possible effects of a positive change to the consumers preference for a good. 4 marks 24. State the term given to each of the following statements as used in insurance. 4 marks a Temporary certificate - b Periodic payments by a policy holder - c Acquiring the rights the insured had of the destroyed property - d Life assurance lasting for a specified period - 25. Outline four purposes of a cash book. 4 marks Business studies Paper 1 2 www.freekcsepastpapers.com MURANG A SOUTH 565 2 END OF TERM ONE EXAM 1 a Explain five ways in which an entrepreneur contributes to production of goods and services. 10 marks b Using a well labelled diagram, explain the circular flow of income in a two sector economy. 10 marks 2 a Explain five demerits that may befall a business that uses poor technology. 10 marks b Explain five ways in which the consumer may benefit from warehousing. 10 marks 3 a From the trial balance given below, prepare a trading, profit and loss account for the year ended 31st August 2021.


10 marks 2 a Explain five demerits that may befall a business that uses poor technology. 10 marks b Explain five ways in which the consumer may benefit from warehousing. 10 marks 3 a From the trial balance given below, prepare a trading, profit and loss account for the year ended 31st August 2021. 10 marks Merchants Wholesalers Trial Balance As at 31st August 2021 Additional information: Closing stock 80,000 b A school leaver plans to start a retail business. Explain five types of small scale retail shops the person may start 10 marks 4 a Explain five reasons why small firms out number large firms in Kenya. 10 marks b Explain five characteristics of property insurance. 10 marks 5 a Outline five benefits that Kenya will get by making pipeline extensions throughout the country for transporting oil products. 10 marks b Describe five channels of distributing locally manufactured goods. 10 marks 6 a Apart from selling shares, explain five sources of capital for a public limited company. 10 marks Debit sh Credit sh Purchases sales 349,000 582,000 Debtors creditors 51,000 62,000 Motor vehicle 600,000 Drawings 30,000 Returns 22,000 19,000 Carriage in 10,000 KCB Loan 170,000 Furniture and fittings 45,000 Discounts 25,000 36,000 Opening stock 40,000 Carriage outwards 7,000 Rent 24,000 Advertising 13,000 Land and buildings 500,000 Daima Bank Loan 210,000 Interests on loans 48,000 Cash at bank 150,000 Cash in hand 28,000 Capital 815,000 1,918,000 1,918,000Business studies Paper 1 2 www.freekcsepastpapers.com b Record the following transactions in Kamene s three column cash book and balance it off on 30th September 2020. September 1: Started business with 10,000 in cash and 5,000 in the business bank account. September 6: Bought goods for sh 2,000 in cash. September 8: Paid creditor, Salome, a debt of sh 10,000 by cheque, less 10 cash discount.


Identify the product promotion method described by each of the statement below. 4 marks Statement Method a Selling a product below its market price so as to entice customers to enter the shop. Business studies Paper 1 2 www.freekcsepastpapers.com b Process of passing information with a view of creating and promoting a favourable image of the organization to the public c Paid form of impersonal presentation of a product through mass communication media. D Reduction in the sales price of a product by the seller so that the buyer ends up paying less. 17. Highlight any four services offered by commercial banks to their clients. 4 marks 18. State four emerging trends in communication. 4 marks 19. Give four characteristics of oligopoly market structure. 4 marks 20. The diagram below shows equilibrium price and quantity. D S Pe S D Qe q uantity Draw a new demand curve on the diagram above showing a decrease in demand and the effect on: 4 marks a . Equilibrium price Pe b . Equilibrium quantity Qe c . Equilibrium point E 21. Highlight four reasons why a country would rely more on primary level of production. 4 marks 22. State four importance of computing national income statistics in a country such as Kenya. 4 marks 23. From the transactions below, state the accounts to be debited and to be credited. 4 marks Transactions Debit Credit i Begun a business with Ksh 10,000 in the bank ii Bought equipment by cheque for Ksh. 8,000 iii Transferred Ksh 60,000 to the bank from the cash till iv Took cash Ksh.7,000 to pay hospital bill 24. Outline four advantages of a systematic arrangement of goods in a warehouse. 4 marks PriceBusiness studies Paper 1 2 www.freekcsepastpapers.com 25. Name four factors considered when determining size of the firm. 4 marks Business studies Paper 1 2 www.freekcsepastpapers.com ARISE AND SHINE TRIAL EXAMINATION 565 2 BUSINESS STUDIES PAPER 2 Answer Any Five Questions 1. A Explain five benefits that may accrue to a firm that adopts division of labour. 10 marks b Discuss five problems that a country may face when measuring her national income using output approach. 10 marks 2.


A Explain five benefits that may accrue to a firm that adopts division of labour. 10 marks b Discuss five problems that a country may face when measuring her national income using output approach. 10 marks 2. A Explain five measures that a business may take to safeguard and control its property. 10 marks b Discuss five factors that a manufacturer should consider when choosing a distribution channel. 10 marks 3. A Describe five circumstances under which a bank may dishonor a cheque. 10 marks b On 1st January, 2012 Chumo Traders had the following balances: Cash 15,000 Bank 40,000 During the month, the following transactions took place. Jan 2 Maritim, a debtor, settled his account of sh.10,000 by a cheque of sh.8,000. 5 Deposited sh.4,000 into the business bank account from the cash till. 9 Paid wages by cash sh.5,000 14 Sold goods in cash sh.14,000 17 Purchased office equipment worth sh.3,000, paying by cheque. 18 Settled Korir s account, sh.10,000 by cash after being allowed a discount of 5 . 21 Received sh.6,000 cash from Kolongei, a debtor. 23 Tangus, a debtor settled his sh.4000 account by cheque having been allowed a discount of 20 . 27 Deposited sh.17,000 in the business bank account from private sources. 30 Banked all the cash in the till except sh.1000. Prepare a three column cash book for Chumo Traders duly balanced at the end of the month. 10marks 4. A Outline five reasons why a wholesaler may decide to construct its own warehouse instead of hiring storage space. 10 marks b Describe five features of human wants. 10 marks 5. A Small scale businesses in Kenya has been struggling over the years, explain five reasons behind this. 10 marks b Explain five factors to consider when choosing a method of product promotion. 10 marks 6. A Describe five steps to be followed when obtaining an insurance policy. 10 marks Business studies Paper 1 2 www.freekcsepastpapers.com b The following information relates to Jambo Entreprises for the year ended 31st December 2018.


10 marks 6. A Describe five steps to be followed when obtaining an insurance policy. 10 marks Business studies Paper 1 2 www.freekcsepastpapers.com b The following information relates to Jambo Entreprises for the year ended 31st December 2018. Item Shs Stock on 1st Jan 2018 75,000 Furniture 2,000,000 Motor vehicles 4,000,000 Purchases 1,500,000 Carriage on Purchases 50,000 Sales 3,000,000 Carriage on Sales 15,000 Discount received 25,000 Debtors 400,000 Creditors 635,000 Discount allowed 10,000 Lighting Heating 15,000 Water 5,000 Rent and rates 30,000 Repairs 50,000 Salaries 100,000 General expenses 70,000 Cash in hand 90,000 Cash at Bank 450,000 Capital 5,230,000 Commissions paid 30,000 Additional information: Stock on 31st Dec 2018 was 105,000. Prepare; i Trading Profit Loss account for the year ended 31st Dec 2018. Ii Balance sheet as at 31st December 2018. KASSU JET EXAMINATION 565 1 BUSINESS STUDIES PAPER 1 JUNE, 2023 2 HOURS 1. State four demographic factors that may positively influence business operations. 4mks 2. Outline four factors that determine the amount of money one would hold for precautionary motive. 4mks 3. Outline four advantages of a bonded warehouse to the Government. 4mks 4. Describe the following terms. 4mks a . Firm b . Industry c . Localization of firms. D . Diseconomies of scale. 5. State four benefits Kenya would get as a result of exploiting her natural resources. 4mks 6. The curve below shows shift in supply curve. Business studies Paper 1 2 www.freekcsepastpapers.com State four factors that may have contributed to the shift from S1S1 to S2S2. 4mks 7. Highlight four reasons for the increasing popularity of savings and credit co-operative societies SACCO s in Kenya. 4mks 8.


10 marks b . Describe Five types of large scale retailers. 10 marks 3. A On 1st July 2021, Sisokhe Traders had Shs.36,500 at bank and cash in hand Shs. 250. During the month the following transactions took place. July 2 Cash sales Shs.42,630 paid directly to the bank. July 3 Received a cheque for Shs.14,100 from Fatuma in full settlement of a debt. July 7 Credit sales Shs. 15,500 to Muvasu July 8 Bought goods for Shs.26,240 on credit from Lytona Enterprises. July 12 Cash sales Shs.42,450. July 14 Paid Namuchu by cheque Shs.23,750 in full settlement of his account after deducting 5 cash discount. July 15 Paid wages Shs.24,000 in cash. July 16 Withdrew Shs.36,000 from the bank for office use. July 17 Cleared Lytona account of Shs. 26,240 in cash less 12.5 discount. July 18 Muvasu cleared her account of Shs 15,500 in cash less 8 discount. July 20 Cheque received from Fatuma was dishonored. July 28 Paid salaries by cheque Shs.48,600. July 30 All cash was banked except Shs.5,000. Required: Prepare a three column cash book. 10 marks b Briefly explain the procedure an insured would follow when making an insurance claim. 10 marks 4. A Explain any Five Measures that the government can use to curb the unemployment rate in Kenya. 10marks b Explain Five differences between a partnership and private Limited company forms of business units. 10marks 5. A Explain Five uses of National Income Statistics to a country. 10marks b Explain Five canons of a good tax system. 10marks Business studies Paper 1 2 www.freekcsepastpapers.com 6. The following balances were extracted from the books of Tik-tok investment on 31 12 2020.


10marks b Explain Five canons of a good tax system. 10marks Business studies Paper 1 2 www.freekcsepastpapers.com 6.The following balances were extracted from the books of Tik-tok investment on 31 12 2020.Item Ksh Land 464,250 Sales 330,000 Opening Stock 35,000 Purchases 300,000 Commissions received 36,000 Carriage outward 30,000 Returns outwards 25,000 Carriage inwards 15,000 Returns inwards 10,000 Closing Stock 69,000 Debtors 65,500 Bank 200,000 Capital 783,250 Creditors 105,500 Cash 60,000 Additional information, Margin stated at 20 Prepare i Trading profit and loss account for the year ended 31st Dec 2020 8marks ii Balance sheet as at 31st Dec 2020 4marks b Explain Four factors that may hinder development of a country. 8marks.


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