Kcse Secondary Level Business Studies  Question Paper

Exam Name: Business Studies 

Course: Secondary Level

Institution/Board: Kcse

Exam Year:2009


ST. PETER’S MUMIAS BOYS HIGH SCHOOL
BUSINESS STUDIES
FORM IV JANUARY 2009

INSTRUCTIONS
1. Answer all questions
2. Time: 2 hours

Q 1. Omulama had the following balances as at 8th April 2005.

Ksh
Land 200,.000
Stock 45,000
Prepaid rent 74,000
Debtors 35,000
Creditor 35,000
Motor vehicles 55,000
Loan from bank 70,000
Cash 5,000
Bank 20,000 cr


(i) Calculate Omulama’s capital (2mks)


(ii) Prepare Omulama’s balance sheet as at 8th April 2004, listing items in the order of liquidity. (4mks)


2. State the type of ledgers in which the following are maintained. (3mks)

ACCOUNT LEDGER TYPE ACCOUNT TYPE
(i) Dividends
(ii) Aketch (Debtor)
(iii) Motor vehicle repairs
(iv) Land
(v) Discount allowed
(vi) Stationery

3. Outline four reasons why national income statistics is not an effective tool of determining a countries level of economic growth. (4mks)

(i)

(ii)

(iii)

(iv)



4. State any four advantages of using a bill board to promote sales. (4mks)

(i)


(ii)


(iii)


(iv)


5. Outline six sources of monopoly power. (4mks)

(i)


(ii)


(iii)


(iv)


6. A, B, & C are oligopolies who in the year 2006 decided to form an association. Outline any five reasons for the formation such an association. (4mks)

(i)

(ii)


(iii)


(iv)

7.



Using the above diagram.
(i) Interpret the nature of demand curve given below. (1mk)



(ii) Outline any six circumstances when a product can have the demand curve depreted. (3mks)

(a)

(b)

(c )

(d)

(e)


(f)





-5-

8. State any four advantages of maintaining subsidiary books. (4mks)

(i)


(ii)


(iii)


(iv)



9. State the effects of the following mistakes on the reported net profits. (5mks)


Error/mistakes Effects on net profit
(i) Omitted sales of sh.2000
(ii) Overcast purchases sh. 1000.
(iii) Under cast opening stock
(iv) Omitted sales returns
(v) Under cast closing stock

10. Highlight four adverse effects of a general wage increase to an economy. (4mks)

(i)


(ii)


(iii)


(iv)







-6-

11. The following diagram relates to monopolistic market structure. Identify the curves in the diagram. (4mks)



















Indicate on the diagram the price and quantity (output) at which profits are maximized. (1mk)

(i)


(ii)


(iii)


(iv)

12. State five reasons why the government finds it necessary to carry out the training and advisory services to the business people. (5mks)

(i)

(ii)

(iii)

-7-

13. The following information are from the books of Olwichi Traders for the year 31st December 1989.

- Creditors as at 1st Jan 1989 20,000

- Creditors as at 31st Dec 1989 15,000

- Cash paid to creditors during the year 100,000

- Cash purchases during the year 30,000

- Credit purchases returns in the year 5,000

- Discount received 25,000


Calculate the total purchases during the year. (4mks)



























-8-

14. From the information given below prepare a balance sheet for DGBS limited as at 31st December 2005. (4mks)

Ksh
Net profit for the year 64,300

Furniture 104,600

Debtors 44,530

Stock (31st Dec 05) 26,770

Cash at bank 13,550

Capital (1st Jan 05) 89,600

Creditors 36,450

Rent prepaid 1,000

Telephone accrued 600

Salaries due 400

Short term bank loan 3,000




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