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Business Studies Form Four Question Paper

Business Studies Form Four

Course:Secondary Level

Exam Year:2007

FRIENDS SCHOOL KAMUSINGA
KIMILILI
FORM 4
BUSINESS STUDIES TERM I, 2007
TIME: 2½ HOURS
ANSWER ANY FIVE QUESTIONS.

1. (a) Transport is one of the aids to trade that bridges the gap between producers and consumers. Explain the importance of transport as an aid to trade. (10 marks)
(b) Describe the procedure followed in claiming compensation in general insurance.(10 marks)

2. (a) Discuss the benefits that would accrue to the Kenyan government through its privatization of parastatals. (10 marks)

(b) Describe five channels that can be used to distribute locally manufactured goods.(10 marks)
3. (a) Explain five ways in which warehousing is significant to trade. (10 marks)
(b) Discuss five factors considered by firms in choosing means of communication. (10 marks)
4. (a) Explain five assumptions of monopolistic competition. (10 marks)

(b) Highlight five factors that may account for the existence of small firms in an economy ( mks)
5. (a) Name five types of unemployment and explain their causes in the Kenyan situation.(8 marks)
(b) Khadija is an accountant with Khetia Drapers supermarket which maintains a three column cash book. The following were the cash transactions of the supermarket during may 2005.
May 1: Opening balances cash in hand sh.48 000 and a bank overdraft of sh.28 000.
May 1: Received payment by cheque from the following debtors after deducting 5% cash
Discounts:
Waititu sh. 10 000
Mwangi sh.11 000
Mboche sh.6 200
3. Paid the following creditors by cheque less 3% cash discount.
Onyango sh.4 000
Muse sh.14 000
Ali sh.12 000
8. Bought stock worth shs12 000 in cash.
10. Deposited sh10 000 in the bank account from the cash box.
15. Made cash purchases for sh8 000
20. The proprietor withdrew sh6 000 from the bank for personal use.
24. Withdrew sh3 000 from the bank and deposited it in the cash box
28. Paid staff salaries hs.10 000 by cheque.

Prepare Khetia drapers supermarket three column cash book and balance it off at the end of the
months.
6. (a) Highlight five problems which may be encountered when measuring national income(10 marks)
(b) The petty cash book of Upendo supermarket is maintained on the imprest system. The amount of imprest is sh.6 000 per month. The petty cashbook has analysis columns for: traveling, postage and stationery, motor van expenses, cleaning and ledger.

The following transactions were extracted from the record of the business for the month of August 2004.

Aug 1: Balance b/d sh.545
2: received a cheque to replenish the imprest
3. Purchased 50 postage stamps at sh.21 each
4. Purchased one ream of typing paper for sh.265.
6. Paid A. Maloba, a creditor sh.510.
8. Purchased office cleaning materials sh.200.
10. Paid for a taxi fare sh.150.
12. Refunded a shop attendant’s bus fare sh.50.
15. Purchased two tins of floor polish at sh.30 each.
16. Paid for petrol and oil sh.700.
18. Sent a letter by registered mail sh.35.
20. Purchased office carpet shampoo sh.100.
25. Paid for petrol sh.500.
27. J. Omulando a debtor paid sh.520 in cash.
28. Purchased 6 packets of carbon paper which were being sold at sh.480 per packet.
30. Received sh.600 in cahs from J. Aluke, a debtor.

Required:
(a) Enter the above transactions in the petty cashbook of Upendo supermarket.(8 marks)
(b) Balance the petty cash book and show the replenishment of the imprest by cheque
(2 marks)

Business Studies Form Four Question Paper

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