Business Studies Form Three Question Paper

Business Studies Form Three

Course:Business Studies

Exam Year:2007

INSTRUCTIONS
Answer all questions in the spaces provided.

1. List 4 types of utility. (4Mks)

2.List 4 parties to which a business is expected to be socially responsible. (4Mks)

3. Outline 5 ways in which the size of a firm may be determines. (5Mks)

4.Highlight 5 causes of unemployment.(5Mks)

5. Highlight 4 causes of business failure in Kenya. (4Mks)

6. The following assets and liabilities belonged to Munyasia stores as at 31st March 2005.
Buildings shs. 120,000. Cash in Hand shs.40,000. Loan form HFCK shs.100,000 and Capital shs.260,000.
During the month of April 2005 the following transactions took place.
April 1-Sold goods worth shs.2,000 cash.
April 2-Paid creditors shs.8,000 in cash.
April 10-Received shs.2,000 from his debtors in cash.
April 15-Bought a motor Van shs.35,000 paying by cheque.
Prepare a balance sheet as ta 15th April 2005. (5Mks)

7. Outline 4 methods through which the government gets involved in business activities. (4Mks)

8. State 4 types of mobility of factors of production. (4Mks)

9. For the following transactions, state the account to be debited and the account to be credited. (8Mks)

TRANSACTIONS ACCOUNT TO BE DEBITED ACCOUNT TO BE CREDITED
(a)Took goods worth
shs.10,000 at cost from
the business for own use.

(b)Returned goods worth
shs.5,200 to the credit
suppliers.

(c)Draw a cheque for
shs.20,000 for office use.

(d)Sold an old computer
for shs.10,000 cash.

10. The following trial balance was incorrectly prepared. Prepare a corrected trial balance.(5Mks)
VUNDI TRADERS.
TRIAL BALANCE AS AT 30TH JUNE 2004
DR CR
Sales 30,000
Returns Outwards 3,000
Capital 29,000
Disciunts Allowed. 800
Returns Inwards 1,200
Purchases 20,000
Cash 44,000
Discounts Received 4,000

11.In the course of preparing his balance sheet as at 31st December 2003, Kamau found out that he had capital amounting to shs.120,000 in his business. During the year, additional investments totaled to shs.50,000 while drawings were shs.56,000. Calculate his capital as at 1st January 2003 if the profit was shs.38,000. (4Mks)

12.State the effect of the following independent transactions on the owner's capital. (6Mks)
TRANSACTION EFFECTS ON CAPITAL
(a)Purchasing of stock for shs.60,000 on credit

(b)Additional investment by the owner of
shs.90,000

(c)Selling of goods for shs.115,000 on which
a profit of shs.35,000 was made.

(d)Payment of shs.28,000 recieved from debtors

(e)Drawings of shs.32,000

(f)Payment of creditors of shs.25,000

13. The following transactions took place at Baraka Limited in the month of February 2005
Feb.1.Opening balances cash shs.8,000 Bank shs.10,000
Feb.3.The owner deposited a cheque of shs.20,000 in the business bank account from his own savings.
Feb.5.Purchasing stock worth shs.12,000 and paid by cheque.
Feb.8.Made cash sales worth shs.7,000.
Feb.11.Purchasing stock worth shs.11,000 on creidt.
Feb.14.Paid four months rent amounting to shs.6,000 in cash.
Feb.16.Withdrew shs.6,000 from the bank for use in the business.
Feb.18.Made sales of shs.7,000 and was paid by cheque.
Feb 24.Paid workers wages amounting to shs.2,000 in cash.
Feb 26.Bought goods worth shs.6,300 by cheque.
Feb.28.Made cash sales worth shs.6,200 and banked the money directly.
Prepare a 2-column cashbook for Baraka Limited for the month of February. (8Mks)

14. Give 5 reasons for the popularity of public limited liability company. (5Mks)

15. Outline 3 approaches that could be used to determine National Income. (3Mks)

16. Highlight 6 problems with road transport in Kenya. (6Mks)

17. Give 6 circumstances under which small firms in Kenya survive despite the existence of large-scale firms. (6Mks)

18. Classify the following ledger account as either personal, Norminal, Private or real.
ACCOUNT CLASSIFICATION
(a)Capital
(b)Salaries
(c)Land
(d)Kitabu Bookshop (creditor)

19. The Balance given below were extracted from the books of Kambi-Mawe traders as at 30th June 2006.

Shillings

Furniture 20,000
Debtors 30,000
Creditors 42,000
Cash in Hand 25,000
Delivery Van 280,000
Capital 348,000
Stock 50,000
Cash at Bank 60,000
Net loss 45,000
Bank Loan 120,000

Prepare a balance sheet as at 30th June 2006. (5Mks)

20. Outline 5 reasons why machine and equipment should be frequently serviced in an organization. (5Mks)

📘 Access 10,000+ CBC Exams With Marking Schemes

Business Studies Form Three Question Paper

More Question Papers

Exams With Marking Schemes

End Term 3 Exams

Mid Term Exams

End Term 1 Exams

Opener Exams

Full Set Exams