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Bridging Business Mathematics Question Paper
Bridging Business Mathematics
Course:Bridging Certificate Course In Mathematics
Institution: Kabarak University question papers
Exam Year:2008
INSTRUCTIONS:
1. Answer ALL Questions in section A and ANY TWO in section B.
2. Show your working clearly.
SECTION A
1. The total expense of a firm to be allocated to it’s four departments are: Shs. 400,000/= on
the basis of sales. The department sales are: A: Kshs. 200,000/=, B: Kshs. 150,000/=, C:
Kshs. 80,000/= and D: Kshs. 100,000/=. Allocate the expenses to the department (5 marks).
2. An estate agent sold a house for Kshs. 500,000/=. He charged a commission of 5% on the
first Kshs. 150,000/=, 2.5% on the next Kshs. 200,000/= and ½% on the remainder. How
much money did the owner receive after the commission was deducted. (5 marks).
3. Charles and David are partners with investments on 1st January of Kshs. 126,000/= and
Kshs. 150,000/= respectively. On 1st June Charles withdrew Kshs. 16,000/= and then
invested Kshs. 24,000/= on 1st August. David invested Kshs. 10,000/= on 1st July and again
on 1st September. Based on their average investment ratio, divide the net income of
Kshs. 500,000/= among them. (5 marks)
4. The Armstrong enterprises has outstanding 1,500 shares of Kshs. 25 per share of common
stock and 3,000 shares of Kshs.100 per share, 5% cumulative preferred stock. During the
past four years, no dividend was declared. This year, dividend of Kshs. 1,350,000/= is to be
distributed. How much is to be paid on:-
(i) each share of preferred stock
(ii) each share of common stock (5 marks)
5. Solve the amount for each item which is missing from the following table:
Sales Sales
Returns
Net sales Cost of
good sold
Gross
profit
Operating
Expenses
Net
Income
1. 450,000 10,000 150,000 147,000
2. 300,000 200,000 60,000 13,500
3. 103,000 900,000 84,000 200,500
4. 9,000 90,000 25,000 17,000
(10 marks)
6. Kedong and Kimani are partners in a business with the following: Notes payable Kshs.
45,000/=, Cash Kshs. 35,000/=, Office equipment Kshs. 100,000/=, Accounts payable Kshs.
90,000/= Land and buidings Kshs. 1,500,000/=, Furniture and fixtures Kshs. 84,000/=. and
Mortgage payable Kshs. 500,000/= ,Goods Kshs. 50,000/=. How much is the owner’s equity
in it’s business. (5 marks)
7. a) After 5% of a bill has been deducted from it, Shs. 1140 remains to be paid. How much
was the bill? (3 marks)
b) How much money when deducted by 15% leaves Shs. 3,500/=. (2 marks)
SECTION B
8. a) In a month Gideon earned Shs. 20,000/= from his employment. His income tax is
calculated at 30% while NHIF deducted was Shs. 340 and the pension was 2.5%. Calculate
the net pay that Gideon received.
(5 marks)
b) Ken received Kshs.28,400 per month as basic pay during the past year. He also received a
house allowance of Kshs.14,000 per month. He is deducted 5% of his basic pay as
contribution to pension and Kshs.320 per month as NHIF contribution. Give the income tax
schedule below,
Income Group Tax Rate
First Kshs.10,164 10%
Next Kshs. 9,576 15%
Next Kshs. 9,576 20%
Next Kshs. 9,576 25%
Balance 30%
Solve for:
(i) His total income tax (5 marks)
(ii) His net pay (5 marks)
9. a) Akinyi purchase a T.V set for Kshs.6,000 under a hire purchase agreement. He paid a
deposit of 331
/3 and an interest of 11% was charged on the outstanding balance over the
period of repayment. If the balance plus the interest was paid in 30 equal monthly
instalments. Calculate:
(i) payable total interest
(ii) monthly instalment (10 marks)
b) Kimeu borrowed some money at 20% interest compounded annually. Six years later, he
paid Kshs. 380,000 to cover the principal and interest. How much did he borrow?
(5 marks)
10. a) The cash price of a certain commodity is Kshs. 12,000. it can be bought on hire purchase
for a deposit of Kshs 2,800 followed by 12 equal monthly instalments under either of the
following schemes.
(i) Compound interest of 4% per month charged on the balance
(ii) A finance charge of 24% on the unpaid balance.
(iii) An interest rate of 20% charged on the unpaid balance.
If you want to buy the commodity, obtain the amount to be paid under each scheme and
chose the best one. (10 marks)
b) Find the total amount of the interest paid on a mortgage taken on a house costing
Kshs. 1,860,000/= with a down payment of 15% and a repayment period of 20 years at
25.5 % interest. (5 marks)
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