BUSI

NESSPAPER1KCSE
PASTPAPERS(2006-2016)
Formar
kingschemes,
pref
ercal
li
ngMdm Mar
iam-
0746711892

Foranswer
s,What
sApp/
cal
l-
0746711892
 565/
1
BUSI
NESSSTUDIES
PAPER1
OCT/NOV2006
2HOURS

1. Stat
efouradv
ant
agesofoper
ati
ngapar
tner
shi
pfor
m ofbusi
ness.
(4mks)

2. Out
li
nef
ourr
isksagai
nstwhi
chashopkeepermayi
nsur
e.
(
4mks)

3. Gi
vefourway
si nwhichagov
ernmentmaypar
ti
cipat
eint
heoper
ati
ons
ofastat
ecorporat
ion. (4mks)

4. Outli
nef
ourconsi
der
ati
onsthatasel
l
ershoul
dtakei
ntoaccountbef
ore
giv
ingcr
edi
ttoanewcustomer.
(4mks)

5. Thetablebelowshowssomeoft heoccupat
ionsinpr
oducti
on.Indi
cat
e
thelevelofproduct
ionassoci
atedwit
heachoft heoccupat
ions.
(4mks)

Occupat i
on Level
ofproducti
on
a) Mi ni
ng ____
_____
____
___
_
b) Oi l r
efi
ning ___
_____
_____
____
c) I nsurance ___
_____
_____
____
d) Teachi ng ___
_____
_____
____

6. Whatar
etheadv
ant
agesofper
sonal
sel
l
ingasamet
hodofsal
es
pr
omotion? (
4mks)

7. Thediagram bel
owshowst hedemandandsuppl ycurvesofacer
tain
commodi t
yandthecorrespondi
ngequili
bri
um pri
ce(Po)andquantit
y(Qo)
.
Onthedi agram,showthenewequi l
ibr
ium quant
ityandpri
ceasar esul
tof
anincreaseinthesuppl
yoft hecommodi t
y. (4mks)
Pri
ce D So
Eo

Foranswer
s,What
sApp/
cal
l-
0746711892
 Po

So D

Qo Quanti
ty
8. Gi
vef
ourassumpt
ionsthatar
eassoci
atedwi
thper
fectcompet
it
or.
(
4mks)

9. Listf
ourtypesofunempl
oymenti
naneconomyandgi
vet
hecause
foreach. (
4mks)

10. Whatbenef
it
smayaccr
uet
omanuf
act
uri
ngf
ir
mthatusesmoder
n
technol
ogy
? (
4mks)

11. Hi
ghl
i
ghtf
ourbenef
it
sofusi
ngel
ect
roni
cfi
l
ingsy
stem.
(
4mks)

12. St
atefoursoci
alr
esponsi
bil
i
tiest
hatamanuf
act
uri
ngf
ir
m shoul
dhav
e
onthecommuni t
y. (
4mks)

13. Whatf
act
orsmayencour
ageent
repr
eneur
shi
pinKeny
a
(
4mks)

14. Hi
ghl
i
ghtf
ourchar
act
eri
sti
csofeconomi
cresour
ces. (
4mks)

15. Gi
vef
ourreasonswhyonewoul
dpr
eferal
ett
ert
oat
elephonet
osend
amessage. (
4mks)

16. Stat
etheeff
ectofeachofthef
oll
owingt
ransacti
onsonthebal
ancesheet
bywrit
ingi
ncrease,
ordecr
easeornoeff
ectineachcase.

Transacti
on Eff
ect
a)Boughtmachi ner
yoncr edi
t ___
_____
_____
___
__
b)Withdrewcashf r
om thebusinessf
orper
sonuse ___
_____
_____
___
__
c)Purchasedstockincash _
___
___
_____
_____
_
d)Paidoutstandi
ngloanbycheque. _
___
___
_____
_____
_

17. Thef
oll
owi
ngbal
anceswer
eext
ract
edf
rom t
hebooksofChebi
Trader
sfort
he
3

Foranswer
s,What
sApp/
cal
l-
0746711892
 mont
hended31Mar
ch2005.
Sh.
Sales 420,
000
Purchases 240,
000
Mot orVan 300,
000
Equipment 120,
000
Debt ors 80,
000
Creditors 40,
000
Expenses 160,
000
Capi t
al 440,
000
Prepar
etrialbalanceofChebi
Trader
sfort
hemonthended31Mar
ch2005.
(
4mks)

18. Thef
oll
owingbalanceswer eext
ractedfr
om t
hebooksofChomboWhol
esaler
s
f
ort
heyearended31Dec2005.
Shs.
Sales 500,
000
Purchases 320,
000
Openingstock(1.
1.2005) 80,
000
Closi
ng31.12.2005 40,
000
Debtors 140,000
Credit
ors 90,
000
Cal
cul
ate
a) margin
b) Currentr
ati
o
c) Rateofstockturnover (4mks)

19. Out
li
nef
ourbenef
it
sofdi
rectt
axat
iont
othegov
ernment
.
(
4mks)

20. Stat
efourf
act
orst
hatmaycausei
nfl
ati
oni
naneconomy
.
(4mks)
.

21. Outl
inefourway
sthattheWorldBankmayuset
oassi
stdev
elopi
ng
countr
iestoi
mprovethei
reconomy.
(4mks)

22. St
atef
ourpr
obl
emst
hatapl
annermayencount
eri
ndev
elopmentpl
anni
ng.
(
4mks)

Foranswer
s,What
sApp/
cal
l-
0746711892
565/
1
BUSI
NESSSTUDI ES
PAPER1
OCT./.
2007
2HOURS
1. Stat
efourty
pesofcompl
aint
sthataconsumeror
gani
zat
ionmayr
ecei
ve
f
rom consumer
s. (4mks)

2. Thefol
lowi
ngtermsrelatet
oCommunicat
ion:v
erti
cal
,hor
izontal
,
for
mal andi
nformal.
Wri
tetheappr
opriat
eterm ofcommuni
cat
ionassoci
atedwitheachof
thefol
lowi
ngstatements.

Stat
ement Ter
ms
(
a) Amanagergi vesinstr
uct i
onstoasuper vi
sor
i
nherdivisi
on
(
b) Rumoursgoi ngaroundt hatthemost
di
scipl
i
nedwor kerswil
lber ewarded.
(
c) Amanageri ssuesagener alci
rcul
art
ot he
employees
(
d) Pref
ectsdiscussingdiscipli
neinthei
rschool

3. Out
li
nethreefeat
uresofaRe–i nsurancecompany
4. Afi
rm wishestoi
ntroduceanewproductintot
hemar ket
.Outl
inefourf
act
ors
t
hatshouldbeconsideredi
nchoosinganappropr
iat
emedi um forpr
omoti
on.

5. Thedi
agr
am bel
owshowst
hecur
rentdemandf
orpet
rol
.

Pr
ice Do

Po

Do

o Qo Quant
it
y

a) Whati
stheef
fectofaf
all
int
hepr
iceofcar
sondemandf
orpet
rol
?
(
2mks)

Foranswer
s,What
sApp/
cal
l-
0746711892
 b) Drawanewdemandcurveont
hedi
agr
am abov
etoshowt
heef
fect
ofafal
li
npr
iceorcar
s. (2mks)

6. Stat
efourwaysinwhi
chpr
oduct
ionact
ivi
ti
esmaynegat
ivel
yimpacton
communityheal
th.

7. Out l
i
nef
ournegat
iveef
fect
sofanagei
ngpopul
ati
ont
oaneconomy
.
(4mks)

8. Thefol
lowingaresomeoft heaccountsavai
labl
etocustomersi
nthe
Kenyanbankingindust
ry:
Currentaccount
,savi
ngsaccountandFi
xed
deposi
taccount.Givet
heaccountthatcorr
espondstoeachofthedescr
ipt
ions
gi
venbelow. (4mks)

Descr
ipt
ion Ty
peofAccount
(
a) Accounthol der srequiretodeposi
ta
Specif
ici ni
tial amountaswel las
maintainami nimum bal ance
(
b) Accounthol dermaydeposi tand
wit
hdrawmoneywhenev erthey
wantwi thoutmai ntai
ninga
mini
mum bal ance
(
c) Bankspayi nt erestont hedeposi
tat
compar ati
velyhi gherrates.
(
d) Moneymaybedeposi t
edatanyt i
me
andinterestisear nedifaspeci
fi
ed
bal
ancei smai ntained

9. Thefol
lowingaresomeoft hedocumentsusedinhomet r
ade:Cashsal
e
recei
pt,cat
alogue,i
nvoi
ceandstatementofaccount.Mat
cheachdocument
wit
htheappropriat
edescri
pti
onprovi
dedinthetablebel
ow.

Descr
ipt
ion Document
(
a) Showsdet
ail
sofgoodsoff
eredfor
sale.
(
b) Giv
equanti
ty,
uni
tpri
ceandtot
al
amountt
obepaid.
(
c) Showstransact
ionssi
ncet
hedat
e
oflastst
atement.

Foranswer
s,What
sApp/
cal
l-
0746711892
 (
d) Showsdescri
pti
onofgoodsbought
,
pri
cesandtot
alamountpai
d.
10. Thefol
l
owingdi
agr
am r
epr
esent
sequi
l
ibr
ium posi
ti
onofaf
ir
m underper
fect
competi
ti
on.

(
b)
y (
c)

Pr
ice

(
a)
(
d)

Out
put x
Label
thepar
tsr
epr
esent
edbyt
helet
ter
sa,b,
c,andd

11. St at
efourci
rcumst
ancesunderwhi
chai
rtr
anspor
tmaybeusedt
ofer
rygoods
(4mks)

12. On1Januar y2006,MzalendoTr aderssh.180000incashandsh. 170000atbank.

Duringthemonth,t
hefollowingtransact
ionstookplace:
2006
January10 paidABM Tr aderssh.25,000bychequel esssh.1000Cashdi scount.
16 Soldgoodsf orsh.14,000cash,less5%discount
31 Bankedal l
thecashexceptsh. 5200
Entertheabovetr
ansact
ionsi ncashbookext ractgi
venbelowandbal anceitoff
.
(5mks)

DR CASHBOOKEXTRACT CR
Dat
e par
ti
cul
aD
ri
scount
cash Bank Dat
e Par
ti
cul
arsDiscount Cash Bank
al
lowed recei
ved

Foranswer
s,What
sApp/
cal
l-
0746711892
 Sh. Sh. Sh. Sh. Sh.

13. Outl
i
nef
ourbenef
it
stoabusi
nesst
hatusesi
tsownwar
ehouse.
(4mks)

14. I
denti
fythebookofori
ginal
ent
ryusedi
nrecor
dingeachoft
hef
oll
owi
ng
t
ransact
ionsofSoyaTrader
s.
(
4mks)

Tr
ansact
ion Bookofor
igi
nalent
ry
(
a) Soldgoodsoncr editt
oWanjaufor
sh.20,000
(
b) Boughtgoodsoncr editf
rom Sai
pei
Tradersforsh.1000.
(
c) Achi engret
urnedgoodsworthsh.6000
(
d) Soy
aret
urnedgoodswor
thsh.
11000t
o
NzomeTrader
s.

15. Thefoll
owinginf
ormationrel
atedtoKeruboTradersfortheyearended
31December ,
2006.
Sh.
Openingstock 24,
000
Carri
ageonsales 12,
000
Purchases 370,000
Sales 442,500
Closi
ngstock 40,
000
Otherexpenses10%onGr ossprofi
t.
PrepareTradi
ngprof
itandLossAccountf ort
hey earended31December,
2006.
(5mks)

Foranswer
s,What
sApp/
cal
l-
0746711892
16. Theaver
ageconsumerpri
cef
ora500gcont
ainerofcooki
ngf
atf
orv
ari
ousy
ear
s
isshownint
hetabl
ebelow.

y
ear Consumerpr
ice Consumerpr
ice
Kshs. I
ndex
2000 47 100
2001 53 -
2002 62 -
2003 74 -

Cal
cul
atet
heconsumerpr
icei
ndexusi
ngy
ear2000ast
hebasey
ear
(
3mks)

17. Statefourway
st hatmaybeusedt ocontrol
theamountofmoneyi
n
cir
culati
onbythecent r
alBankofKenya.
18. Outli
nefourdi
fferencesbetweenagoodandaservi
ce.
(4mks)

19. Highl
ightf
ourfact
orst
hatcoul
dinf
luencemobi
l
ityofcapi
tal
asaf
act
or
ofproduct
ion.
(4mks)

20. Stat
efouradv
ant
agesofanopenof
fi
cel
ayoutt
oanor
gani
zat
ion.
(4mks)

21. Hi
ghl
ightf
ourway
sinwhi
cht
her
unni
ngofpubl
i
ccor
por
ati
onsmay
bei
mproved. (
4mks)

22. Stat
efourr
easonswhycount
ri
esmaydeci
det
otr
adewi
theachot
her
.
(4mks)

23. Out
li
nef
ourbenef
it
sthataccruet
oacustomerwhousesaut
omat
ed
tel
l
ermachi
ne(ATM)bankingser
vice. (
4mks)

24. Stat
efourf
act
orst
hatcoul
dhast
ent
heeconomi
cdev
elopmentofacount
ry.
(4mks)

25. Out
li
nefourelement
sthatmaycompr
iset
heext
ernal
env
ironment
ofabusiness.
9

Foranswer
s,What
sApp/
cal
l-
0746711892
 (
4mks)

565/
1
BUSI
NESSSTUDIES
PAPER1
OCT/NOV2008
2HOURS

1. St
atef
ouradv
ant
agesofdi
vi
si
onofl
abour
.

2. Out
li
nef
ourf
eat
uresofaPr
iv
ateLi
mit
edCompany

3 St a
tefourwa
ysi
nwhi
chawar
ehous
eisofi
mpor
tanc
etoa
manuf
act
ure
r.

4 Thedi
agr
am bel
owshowst
otal
costcur
veofaf
ir
mint
heshor
t-
run.

10

Foranswer
s,What
sApp/
cal
l-
0746711892
 Cal
cul
atet
heav
eragev
ari
abl
ecostoft
hef
ir
m.
5. Outl
i
nef
ourbenef
it
sthatmayaccruetoabus i
nesspersonwhous ese-
mai
lt
o
communi
cate.
6. Outl
i
net
hemeaningofthefol
l
owingtermsasus edinaccount
ing:
(
a) Cont r
aentry.
.
..
..
..
..
.
..
..
.
..
..
..
.
...
.
..
..
..
..
..
..
.
..
..
..
..
..
.
..
..
..
..
.
...
.
..
..
..
.
...
..
.
..
..
..
..
.
..
(
b) Cas hdisc
ount..
.
..
..
.
..
..
.
..
..
.
..
..
..
..
..
.
...
.
..
..
..
..
.
..
..
..
..
..
.
..
..
..
..
..
.
..
..
.
...
.
..
..
..
.
..
..
..
.

7. Foreachoft hefoll
owingt r
ansact
ionsinthet
abl
ebelow,i
ndicat
einthe
spacesprovided,t
hesour cedocumentfrom whi
chthetr
ansacti
onwould
berecorded.
No. Tr ansact
ion Sour
cedoc ument
(a) Sal
esofgoodsoncr edi
t
(b) Corr
ecti
onofanunderchar ge
(c) Goodsreturned
(d) .
Purcha
se soncredi
t
8. St at
ethet ypeofledgeraccountt owhicheachofthefol
lowingaccount
s
r
elat
es;

Ac
count Ty
peofLedgerac
count
Commi
ssi
onI
ncome
Pre-
pai
dInsurance
Suppl
ie
r
MotorVehi
cle

9. Thef
oll
owingbal
anceswer
eex
trac
tedf
rom t
hebook
sofSol
aiTr
ader
sasat
31May2 0
0 6
.
Sh
11

Foranswer
s,What
sApp/
cal
l-
0746711892
 Curr
entassets 220,000
Capi
tal 425,
000
Netprofi
t 85,000
Cr
editor
s 98,200
Accr
uedex pens
es 11,800

Dete
rmi
ne:
(a) Workingcapi
tal
(b) Ret ur
noncapital
s
t
10. On31Dec ember2005,Ki
wah ada c
cruede
xpensesofSh.
24,000.
On31
Decembe r
,2006,t
heac c
ruedexpenseswereSh,
30,000.
In2006expe
nse
s
Pai
dforamountedtoSh .
85,000.
Det
erminetheexpense
sf ort
heyear2006.

11. Outl
inethecir
cumst
ancesunderwhicheachoft
hef
oll
owi
ng
character
ist
ics
ofhumanwant smaybeobserved:

12. Out
li
nefourfact
orsthatanent
repr
eneurshoul
dconsi
derbef
oreset
ti
ngup
a
manufact
uri
ngbusiness.

13. Outl
i
nef ourr
equi
rement
sforopeni
ngacur
rentaccountwi
tha
commercial
bank.

14. Outl
inefourf
act
orst
hatat
raderwoul
dconsi
deri
nchoosi
ngamodeof
tr
ansport
.

15. St
atef
ourr
easonswhyet
hic
alpr
act
icei
snecessar
yinPr
oduc
tPr
omot
ion.

16. TheeconomyofacountryXhasgr ownattherateof10%perannum for

thel
asttwoyear
s. However,t
hestandardofl
iv
ingamongt heci
ti
zenshas
notchanged.
Outl
inefourreasonsthatmayhavecontr
ibut
edtot
histr
end.

12

Foranswer
s,What
sApp/
cal
l-
0746711892
 17 Thef
igur
ebel
owshowsadecr
easei
ndemandf
oracommodi
tyf
rom DDt
o
D\
D\,

Pr
ic
e

Qu
ant
i
t
y

Stat
ef ourpossi
bl
ecausest
hathav
eledt
othi
s
si
tuat
ion.

18 Th
efol
l
owi
ngi
nf
orma
ti
onr
el
at
est
oOl
eTr
ade
rsa
sat30thJ
une2007:

Shs.
Ma chi
nery 200,
00
Furnit
ure 0
Premises 100,
000
Debtor
s 400,
00
Cas hinhand 0
Bankov erdr
aft 160,
000
Credit
or s 10,000
100,000
Calculat
ec api
talforOleTradersasat30June42
0,0
007:
00
19 Outli
net hepur pos eofatri
albalanceasusedinbook k
eepi
ng.
20 Statetwoc haracteri
sti
csofeachoft hef
oll
owi ngbal
ancesheet
el
ement
s:

(
a) As
set
s

(
b) Li
abi
l
it
ies

13

Foranswer
s,What
sApp/
cal
l-
0746711892
21 Out
li
nefourmeas
uresthatagov
ernmentmayputi
npl
acet
oreduce
hi
ghinf
lat
ioni
nac ount
ry.

22 El
ephantEnterpr
isesacquir
edabui l
dingvaluedatsh1000000on
1January2007.Thebuildi
ngwasi nsuredwi t
htwoi nsur
ancecompanies.
ZebraandSimbaf orsh600000and. sh400000r espect
ivel
y.I
n
May2007, f
iredamagedt hebuil
ding,
causingElephantEnterpr
isest
o
suff
eralossof20%oft hebui
ldi
ngv alue.
Determinecontr
ibuti
onmade
bySimbaandZebr atocovert
heloss.

23 Outl
inefourbenefit
sthataccr
uetoabusi
nessper
sonwhousest
hel
atest
Technologyi
nr ecordkeepi
ng.

24 Vi
si
torstotheoff
icesofTr
ipl
eBEnt er
pr i
seshavebeencomplaini
ngof
l
ackofetiquet
tefr
om thesecr
etar
ies.Highli
ghtf
ourmeasuresthatthe
secr
etari
escantaketoi
mprovetheoffi
ceetiquet
te.

25 Out
li
nef
ourr
easonswhyt
hegov
ernmentmayuser
egul
ator
ymeasur
est
opr
otec
t

14

Foranswer
s,What
sApp/
cal
l-
0746711892
565/
1
BUSI
NESSSTUDIES
PAPER1
OCT/NOV2009
2HOURS
1 St at
efourf
act
orst
hatmayaf
fectt
hegeogr
aphi
cal
mobi
l
ityofl
abour

2 Outl
inef
ourwaysinwhi
chCommer
cial
Att
achesmaypr
omot
e,t
rade
bet
weenthei
rcountr
yandot
her
s (
4mks)

3 Ambosel
iEnter
pri
seshasbeenspendingheavil
yonpr omot i
onofit
s
pr
oduct
sthoughit
ssaleshaveconsistent
lydecl
ined.Outli
nefour
measur
erst
hatthecompanymayt aket or
eversethetrend. (
4mks)

4 Writ
ethet
ypeofdemandr
epresent
edbyeachofthefol
l
owingstatements
(
i)Demandforacommodi
tycausesanincr
easei
ndemandf oranother
commodit
y
(
ii
)Demandforonecommodi
tycall
sfordemandofanot
hercommodi ty (
2mks)

5 Thef
oll
owi
ngbal
anceswer
eext
ract
edf
rom t
hebooksofSakuTr
ader
son
31Mar
ch2008
Fi
xedasset s 300,000
Currentasset
s 123,700
Creditors 84,500
5y earloan 125,000

Det
ermi
net
henetwor
thoft nessasat31stMar
hebusi ch2008 (
4mks)

6. I
ndi
cat
ethet
ypeofj
our
nal
inwhi
cheachoft
hef
oll
owi
ngt
ransact
ions
woul
dber
ecor
ded
Tr
ansact
ions Ty
peofj
our
nal

(
i} Goodspr
evi
ousl
y
sol
doncr
edi
twer
e
r
etur
ned
(
ii
)
Goodsboughton
cr
edi
t
(
ii
i)
Goodssol
don
(
iv) cash
Mot
orv
ehi
clesol
d

15

Foranswer
s,What
sApp/
cal
l-
0746711892
 cr
edi
t

(
4mks)

7 Atraderhasdecidedt
otakealoantoexpandamanufact
uringbusi
ness.
Givetwor easonswhyi
tisbenef
ici
alt
oborrowf
rom anon-bank
f
inanci
alinsti
tuti
on (
4mks)

8 stat
efouri
temst
hatusual
l
yappearont
hecr
edi
tsi
deoft
hecur
rentaccount
ofacountr
y (
4mks)

9 Out
li
nefourbenef
it
sthatmayoccur
-toabusi
nessf
rom anot
hercount
ry’
s
pol
it
icst
abil
it
y (4mks)

10. Alucrat
ivemanuf actur
ingfi
rm hasbeenconsi
stent
lyr
eleasi
ngtoxi
cwastes
intotheneighborhood.Outl
i
nefourmeasuresyoucantaket ost
opthef
ir
m
from suchmal pr
act i
ce (
4mks)

11 Outl
i
nefourf
act
orsthatshoul
dbeconsi
der
edi
nthechoi
ceofameansf
or
tr
anspor
ti
ngper
ishabl
egoods (
4mks)

12 Out
li
nefourci
rcumst
ancesunderwhi
chf
acet
ofacecommuni
cat
ionmay
bei
neff
ecti
ve.

13 Highl
ightf
ourbenef
it
sthatwoul
doccurataf
ir
mlocat
ednearot
her
exist
ingfi
rms (
4mks)

14 Countryxhasbeenexper i
enci
nganupwar dtrendinthepri
ceof
petrol
asar esul
tofarise ininf
lat
ion.Stat
ef ourst
epsthatcanbe
takentominimizeexpendi
tur
eont hispr
oduct (
4mks)

15 Out
li
nefourreasonswhyani
ncr
easeinpercapi
taincomemaynotnecessar
il
y
l
eadtoariseinthest
andar
dofli
vi
ngofthecit
izens. (
4mks)
16

Foranswer
s,What
sApp/
cal
l-
0746711892
16 ThebookkeeperofTandeTr adersextr
actedthef oll
owingi
nformati
onf
rom
theaccount ingr ecor ds.
1, 1.
2007 31. 122007
Sh Sh
Suppliers 465,000 640,000
Discountr eceived 12,000
Purchasesr eturns 25,000
Duringthey earended31. 12.2007,suppl
i
erswer epaidSh1,500,
000
whilecashpur chasesamount edtoSh800,000
Determi nethepur chasesf ortheyear (
5mks)
17 Outlinef ourcircumst ancest hatwouldmakeanof ficemanager
t
or epl
aceanexi stingmachi newithamoder none (4mks)

18 Outl
inef ourr
easonswhyhyper
market
sarebecomingi
ncreasi
ngl
y
popularinKenya (
4mks)
19 Thegr aphbelowshowstherat
eofpopul
ati
ongrowthofgiv
encount
ry

Y t

Popul
ati
on

Gr
owt
hrat
e

-
--
--
--
--
--
--
--
--
-s

0 a x

Ti
me{
year
s}

Out
li
nef
ourf
act
orst
hatmayhav
econt
ri
but
edt
othet
rendbet
weensandt (
4mks)

20 Kazi
m mai nt
ainsapett
ycashbookonweeklyi
nterest
,on1stApr
il
2007t hecashbalancewassh.2,
570
Dur i
ngtheweekofApr i
l,t
hefoll
owi
ngt
ransact
ionstookpl
ace

2007

Apr
il
:2Recei
vedr
eimbur
sement
sfr
om t
hemai
ncashi
er

17

Foranswer
s,What
sApp/
cal
l-
0746711892
 3Pai
dsh3,
070f
orcl
eani
ngmat
eri
als.

4pai
dsh2,
000busf
are

6boughtst
ati
oner
ywor
th2,
200

Prepar
eapet t
ycashbooktor
ecor
dtheabov
etr
ansact
ionusi
ngacl
eani
ng,
st
ati
oneryandbusfarecol
umns (5mks)

21 Highl
i
ghtfourci
rcumst
ancesunderwhi
chbusi
nessent
erpr
isesmaychoose
t
omer ge (
4mks)

22 Thef
oll
owi
ngi
nfor
mat
ionr
el est
at oMaj
iMazur
iTr
ader
sasat31.
2-2008

Fi
xedassets 400,000
St
ock 120,000
Curr
entl
iabi
li
ti
es 60,
000
Netprof
it
sforthecur
renty
ear 100, 000

Calcul
ate:
(i
)r
ateofretur
noncapi
tal
empl
oyed;
(i
i
)Currentrat
io (
4mks)

23 Highl
ightfourf
act
orst
hatmustbeconsi
der
edbef
orei
ncur
ri
ngpubl
i
c
Expendit
ure (
4mks)

24 Out
li
nef ourbenef
it
st hataccr
uet othegov
ernmentasar
esul
tof
Pri
vat
izati
onofpublicenterpr
ises. (
4mks)

25 KAMATownedamot orvehi
cle,v
aluedatsh1,
000,
000.Hecompr ehensi
vely
i
nsuredthecaratSh800,000.Themot orv
ehi
clewasinv
olv
edinanacci dent
anddeclar
edawr i
teoff.Cal
culat
etheamountKAMATshoul dgetfrom t
he
i
nsurer (4mks)

18

Foranswer
s,What
sApp/
cal
l-
0746711892
 565/
1
BUSI
NESSSTUDIES
PAPER1
OCT/NOV2010
2HOURS

1. I
nthespacespr
ovidedbel
ow,indi
cat
ethet
ypeofut
il
it
ycr
eat
edbyeachofthe
f
oll
owi
ngcommer cial
acti
vi
ti
es: (4mks)
Commercialacti
vi
ty Ty
peofut
il
i
ty
(
i) Sell
i
nggoodst ocust
omer
s;
(
ii
) Tr
anspor ti
nggoods;
(i
ii
) Storekeeping;
(
iv) Mak i
ngac hair
.
(
5mk
s)

2. Gi
vef
iver
eas
onswhyt
hegov
ernme
ntmayf
indi
tne
ces
sar
ytos
tar
tpar
ast
atal
s.

3.Namethetypesofwar ehousesassociat
edwit
heachofthestat
ementsgi
venbel
ow:
(
4mk
s)
Statement Typeofwarehouse
(
i) Goodsc anbes toredbefor
e
payme ntofc ustomsdut y
.
(i
i) Indiv
idualscanhi restor
agefacil
i
ti
es.
(
ii
i) Goodsar estoredf r
om several
manufac tur
ers.
(
iv) Special
isedgoodsar est
ored

4. Thefi
gur
ebel
owshowsashi
fti
nthesuppl
ycur
veofagi
vencommodi
ty
.
Pr
ice

19

Foranswer
s,What
sApp/
cal
l-
0746711892
 P Eo E1

So S1
O Qo Q1 Quant
it
y

Out
li
nef
ourf
act
orst
hatmayhav
ecaus
edt
hes
hif
tint
hes
uppl
ycur
vef
romSot
o
Sr

5. Theba
lanc
esgi
venbe
lowr
el
at
etoEnot
i
kaTr
ade
rsf
ort
hey
eare
.31ST De
cembe
r
2008.

Shs
Ca pit
al ?
2y earbankl oan 230,020
Creditors 95,200
Fi
x edasset s 480,000
Currentas s
ets 145,220
Prepareabal ances
hee
tasat31stDecembe
r2008. (
5
mk
s)

6. Gi
vet
wor eas
onswhyat
hreec
olumnc
ashbooki
sus
edbot
hasaj
our
nal
and
al
edger
. (4mks
)

7. Th emanagementofnat
ionalde
bt,cr
editcont
rolandlenderoflas
tresortare
someoft hef
uncti
onsoftheCentr
alBank.Matchthesefuncti
onswiththe
statement
sgiv
enbelow. (
3mks)

Statement Funct
ion
i
. Repayme ntofGover
nments
ec ur
it
ie
sas
theymat ur
e.
i
i
. Rece i
ptoftr
easur
ybil
lst
osecurel
oans
.

i
i
i. Di
rect
ingc
ommer c
ialbank
sont
he
pr
efer
redsec
tor
stole
ndmoney.

8. Stat
ethemeani
ngoft
hef
oll
owi
ngt
ermsofs
alea
sus
edi
nint
erna
ti
ona
ltr
ade
:
(
4mks)
(i
) L OCO.
(
ii
) C. I.
R
(
ii
i
) F. A.
S
(i
v) F.O.
Q
20

Foranswer
s,What
sApp/
cal
l-
0746711892
 9. ThemanagerofTasaLimi
tedc
ons
tantl
ywalk
saroundv
ari
ousde
par
tme
nts
.
Stat
efourmeri
tsoft
hisst
yl
eofmanagement.
(
4mk
s)

10. Stat
efourr
easonswhythegov
ernmentshoul
dcr
eat
eanenabl
i
ng
envi
ronmentf
orinv
est
ors. (
4mks)

11. Out
li
nef
ourdi
ff
erencesbet
weeni
nsur
anceandassur
ance.
(
4mks)

12. St
atef
ourf
act
orst
hatmayi
nfl
uenc
ethel
evel
ofnat
ional
inc
ome
.
(
4mk
s)

13. Out
li
net
hedi
ff
erenc
ebet
weenc
ashandc
redi
ttr
ans
act
ions
.
(
2mk
s)

14. Thet
ermsc
api
tal
empl
oyed,
wor
kingc
api
tal
,owner
'
sequi
tyandbor
rowed
capi
tal
arety
pesofcapi
talfoundinabus
ines
s.Mat
cheac
hoft
hes
tat
ement
s
gi
venbelowwit
htherel
evanttypeofc
api
tal
.
(
3mk
s)

State
me nt Ty
peofc
api
tal
(i
)Resourcesinvest
edintothebus i
ness
bytheowner .
(
ii
)Excessofc ur
rentasset
sov ercurr
ent
l
i
abil
it
ies.
(
ii
i
)Amounti nvestedint
othebus i
nessby
out
sider
s.

15. Out
li
nef
ourway
sinwhi
chgov
ernme
ntex
pendi
tur
emays
tabi
l
izet
heec
onomy
ofac
ount
ry
.
(4mk
s)

16. St
atef
ourpr
obl
emsas
soc
iat
edwi
thdev
elopmentpl
anni
ng.
(
4mk
s)

17. St
atef
ours
erv
icest
hatawhol
esal
ermayof
fert
oamanuf
act
urer
.
(
4mk
s)

18. Statefourr
eas
onswhyf
lowe
rex
por
ter
swoul
dtr
ans
por
tthe
irpr
oduc
ebyai
r
rathert
hanbysea.
(4mk s)

21

Foranswer
s,What
sApp/
cal
l-
0746711892
 19. Thediagram bel
owr
epr
esent
sther
elat
ionshi
pbet
weenpopul
ati
onandi
ncome
percapi
ta.

P Q
(
axi
s)

O
S(
axi
s)
St
atewhati
sre
pre
sent
edbyPandSax
es,
andl
ett
ersRandQ. (
4mk
s)

20. Thef oll

owinginfor
mationwasextractedfrom thebooksofHel
en
Traders;
1/1/
200831/ 12/2008
ShsSh s
(i
) Sal ar
iespr
e-pai
d 24,
800 52, 400
(i
i) Sal ar
iespaid - 48,
200
Prepar
easal ar
yexpenseaccountusingtheabov einf
ormati
on.
(5mks)

21 Stat
efourc
irc
ums
tanc
esunderwhi
chonemayde
cidet
ost
artape
rsonal
bus
ine
ss.
(4mk
s)

22 Hi
ghl
i
ghtf
ourway
sinwhi
chabus
ine
ssi
deac
anbei
mpl
ement
ed. (
4mk
s)

23 Outl
inefi
vemeasur
esthatamanagercant
aket
oimpr
ovet
hewor
king
env
ironmenti
ntheof
fi
ce. (
5mk
s)

24. Highli
ghtf
ourchal
lengest
hataper
sonmayencount
erwhenusi
nga
cel
lphone(mobi
lephone) (
4
mks)

25. Thedi
agr
am bel
owrepr
esent
sthel
ong-
runequi
l
ibr
ium ofaf
ir
m under
monopol
i
sti
ccompeti
ti
on.

22

Foranswer
s,What
sApp/
cal
l-
0746711892
 Pr
ice

O Qo Quant
it
y
Namet
hecur
vesr
epr
esent
edbyt
hel
ett
ersa,
b,c,
andd
(
4mk
s)

565/
1
BUSI
NESSSTUDIES
PAPER1
OCT/NOV2011
2HOURS

1I
dent
if
ythet
ypesofwhol
esal
ersdescr
ibedi
nthest
atement
sgi
venbel
ow: (
4mk
s)

a) Awhol
( esal
erwhotradesinmaizegrai
nonly
.
(
b) Awholesal
erwhosuppliesgoodstomostofthetr
ader
sinKitui
,
MbooniandMachakosdistr
ict
sintheEast
ernpar
tofKenya.
(
c) Awholesal
erwhobuy
st omat
oesfrom far
mersinr
ural
areas
andsel
l
sthesametootherwhol
esaler
sinurbanar
eas.

23

Foranswer
s,What
sApp/
cal
l-
0746711892
 (
d) Awhol
esal
erwhot
radesi
nawi
dev
ari
etyofhumanmedi
cine.
2 Out
li
nef
ourf
act
orst
hatshoul
dbeconsi
der
edbef
orebuy
ingof
fi
ceequi
pment
. (
4mk
s)

3 Out
li
nefourmalpr
acti
cesbyt
rader
sagai
nstwhi
chconsumer
smayneedpr
otect
ion
byt
hegovernment. (4mks)

4 St
atet
hreef
eat
uresofani
nsur
abl
eint
erest
. (
3mks)

5 Out
li
nef
ourway
sofr
educ
ingt
hel
evel
ofunempl
oymenti
nKeny
a. (
4mk
s)

6 Stat
efourser
vicesof
fer
edbyacommer
cial
bankt
oit
sconsumer
s. (
4
mks)

7 Li
stf
oursour
cesofpubl
i
cfi
nance. (
4mk
s)

8 Out
li
nef
ourr
eas
onswhyc
ount
ri
esmayt
radewi
theac
hot
her
. (
4
mks
)

9 Stat
efourr
eas
onswhyec
onomi
cdev
elopmenti
sdes
irabl
etoac
ount
ry. (
4
mks)

10.I
ndi
cat
ether
ewar
das
soc
iat
edwi
theac
hoft
hef
act
orsofpr
oduc
tioni
nthet
abl
e
bel
ow.

Factorofproduct
ion r
ewar
ds
a l
and
b l
abour
c capi
tal
d entr
epreneurshi
p

11Out
linefourcir
cums t
ancesunderwhi
chaco-
operat
iv
esoc
iet
ymaybedi
ssol
ved.
(4
mks)
12 Highli
ghtfourfeat
uresofabondedwar
ehouse, (4
mks)

13 Out
li
nef
ourf
act
orst
hatmaybec
ons
ider
edwhenmeas
uri
ngt
hes
izeofaf
ir
m.(
4
mks)

14 Thef
oll
owi
ngt
rans
act
ionswer
eex
trac
tedf
rom t
hebook
sofSar
ahTr
ader
sfor
24

Foranswer
s,What
sApp/
cal
l-
0746711892
 themonthofMarch2006.
March10:Pur
chasedgoodsonc redi
tworthKsh200,000fr
om Sali
m Tr
ader
s
March25:Sol
dgoodsonc redi
tworthKsh420,000toShahTrader
s
Recor
dtheabovet
ransact
ionsint
heledgeraccount
sbelow: (
4
mk
s)

(
a)Sal
i
mtr
ader
saccount c)Shaht
rader
saccount

b)
Pur
chasesaccount d)Sal
esaccount

15 On2ndNovember2006,Oromoreceivedaninvoi
ceforKsh12,
000.Ter
msofpayment
Weretradediscount5%andcashdiscount10%,i
fpaymentismadewithi
n30days.
Deter
mi net
heamountpai di
fpaymentwasmadeon28t hNovember2006. ( 4mks)

16Thef ol
lowingbal anceswer eext ract edfrom thebooksofNaf ul
aTr ader
sasat
st
31 December2005.
Ksh
CurrentLi abiliti
es 150,000
Netpr ofit 50,000
Total asset s 500,000
2y earsBankl oan 100,000
Calculatether ateofr eturnon
capital. (4mks)
17.Thei nformat i
ongi venbel owwasext r
actedfrom thebooksofAmi na
Trader son 31stDecember2006.
Ksh260, 000
Pur chases 75,00012, 500
Openi ngst ock 27,500
Car ri
ageon
pur chasesCl osing Goodswer esol datamar k-
upof25%.
st ock Usingt hei nfor mationgi
v enabove,pr
epareAmi naTrader
s'
Tr adi
ngAccount . (4mks)
18.St atefourbenef it
sthataf armermaygetbyt ransport
ingproducetothemarketby
road.
(
4mks)
19 Thet abl egi v
enbel owr epr esent sthesupplyscheduleofsukuma
wiki(kales)f oreightweeksi nt hemont hsofJanuaryandFebr uar
y
2009.

25

Foranswer
s,What
sApp/
cal
l-
0746711892
 WEEK 1 2 3 4 5 6 7 8
QUANTITY 505 485 430 375 340 290 215 195
(METRI
C
TONNES)

Out
li
nef
ourcausesoft
het
rendi
nthet
abl
e.

20 Out
li
nef
ourway
sinwhi
chhousehol
dscont
ri
but
etonat
ional
incomeofa
count
ry.
4mks)

21 Out
li
nef
ourci
rcumst
ancesi
nwhi
chat
radermayuseor
alcommuni
cat
ion.
(
4mks)

22 Out
li
nef
ourr
easonswhyaf
ir
m mayr
emai
nsmal
l
. (
4
mks)

23 On1stJanuar y2007,Mut honiTradersCashBookshowedacr editbal

anceof
Ksh150,000atthebankandadebi tbalanceofKsh25,250inhand.Duri
ngthe
month,thef
oll
owingtransactionst ookplace:
January5: Madecashsal esforKsh21, 500
January16: Receivedachequef orKsh360, 000f
rom adebt
or.
January28: Paidacr edit
orKsh. 100,000;partl
ybyachequeofKsh80,000
andthebal anceincash.
PrepareaTwo-columnCashBookf orthemont h.
(
5mks)

DR CR
Da
te Det
ail
s Cas
h Ba n
k Dat
e De
tai
l
s Cah Bank
s
(
Kshs) (
Kshs) {
Kshs)(
Ksh
s)

24 St
atef
ourbenef
it
sthatat
radermaygetbyadv
ert
isi
ngpr
oduc
tsi
nanews
paper
.
(
4mk
s)

26

Foranswer
s,What
sApp/
cal
l-
0746711892
 565/
1
BUSI
NESSSTUDIES
PAPER1
OCT/NOV2012
2HOURS

1.Outl
inefourci
rcumstancesunderwhi
chcashwi
thordermaybeused.
2.Statefourbenefi
tst
hataf ar
mermayderi
vefr
om beingamemberofaPr
oducer
Co-operat
iveSoci
ety (
4mks)

3.Hi
ghl
i
ghtt
hreebenef
it
sofgl
obal
i
zat
iont
oabusi
nessent
erpr
ise.
(
3mks)

4.Highli
ghtfourwaysinwhi
chconsumer
smaypr
otectt
hemsel
vesagai
nst
exploi
tat
ionbytrader
s. (
4
mks)

5.Outl
i
neonecircumst
anceunderwhi
cheachoft
hef
oll
owi
ngt
elecommuni
cat
ion
ser
vicesmaybeused: (3mks)

(
i)Paging
(
ii
) Facsi
mil
e(fax)
(
ii
i)Radiocal
l

6.Thefol
lowi
ngi
nfor
mat
ionwasext
ract
edf
rom t
hebooksofMar
igi
Tr son30thJune
ader
2009.
I
tem Shs.
Purchases 720,
000
Openi ngstock 165,
000
Closingstock ?
Sales 980,
600
Mar gin 20%

Prepar
etheTradi
ngAccountofMar
igi
Trader
sf ort
heyearended30thJune2009.
(5mks)
7.Outl
inef
ourtool
sofmonetar
ypoli
cyt
hatagovernmentmayuset oreduce
excessmoneyinci
rcul
ati
on. (4mks)

8. Out
li
neoneci
rcumst
anceunderwhi
cheachoft
hef
oll
owi
ngt
ypesofi
nfl
ati
on

27

Foranswer
s,What
sApp/
cal
l-
0746711892
 mayoccur
: (
4mks)
(i
) Creepi
nginf
lat
ion
(
ii
) Hy
per i
nfl
ati
on

9.St
atef
ourf
ormsofeconomi
cint
egr
ati
ont
hatmayexi
stbet
weencount
ri
es. (
4

mks)

10.Hi
ghl
i
ghtf
ourpr
obl
emsofdev
elopmentpl
anni
ngt
hatacount
rymayexper
ience.(
4

mks)
11.Nyabokeoperat
esashopinafar
mingarea.St
atefourway
sinwhi
cht
hef
armi
ng
communitycanbenef
itf
rom t
hebusi
nessacti
vi
ty. (4
mks)

12.Out
li
nef
ourf
eat
uresofi
ndi
rectpr
oduct
ion.

13.St
atef
ourf
act
orst
hatmayl
eadt
othesuccessofabusi
ness. (
4mks)

14.St
atef
ourway
sinwhi
chagoodf
il
ingsy
stem mayf
aci
l
itat
etheoper
ati
onsi
nan

of
fi
ce. (
4mks)

15.Highli
ghtf
ourbenef i
tsthatacount
rygetsbyencour
agi
ngtr
adeamongherciti
zens.
(
4mks)
16.Outli
nefourchall
engest hatmaybeencount
eredwhenmeasur
ingnat
ionali
ncome
usingtheoutputapproach. (4mks)

17.Hi
ghl
ightf
ourmeasur
est
hatagov
ernmentmayt
aket
oreducet
hemor
tal
i
tyr
ateina
count
ry. (
4mks)

18.Thefol
l
owingbal
anceswereext
ract
edf
rom t
hebooksofHi
ghl
i
feGener
al
st
Stor
eson31 December2008:

It
em Shs.
Landandbui
l
dings 650,
000
Stock 470,
000

28

Foranswer
s,What
sApp/
cal
l-
0746711892
 Bankov er
draf
t 80,
000
Debtor s 350,
000
10y earBankLoan 500,
000
Creditors 220,
000
Cash 50,
000
MotorVan 150,
000
Capital ?

Prepar
ethebalancesheetofHi
ghl
i
feGener
alSt
oresasat31st (
5mks)
December,2008.

19.Gi
vent
hest
atement
sint
het
abl
ebel
ow,
indi
cat
ethet
ypeofent
ryt
obemadei
n

t
her
elev
antl
edgeraccount
s: (
4mks)

Stat
ement Ty
peofEnt
ry
(i
) Ani
ncreasei
nrev
enue

(
ii
)Adecr
easei
nanasset

(
ii
i)Ani
ncr
easei
nanexpense

(
iv)Adecr
easei
nli
abi
l
ity

20.Inthespacesprov
idedint
het
abl
ebel
ow,
namet
hedocumentJambiLt
d.woul
dissue
underthe
cir
cumstancesdescri
bed: (4mks)

Ci
rcumst
ance Documentt
oissue

(i
) JambiiLtdsoldgoodswor thSh.54,000
oncredi
ttoJami larTraders.
(
ii
)OsuriEnterpr
iseswhi chhadbought
goodswor thSh27, 000waser roneously
chargedforonlyShs25, 000.
(
ii
i) GuruTraderspaidShs33, 900by
chequet oJambi Ltd.forgoodswhi ch
hadbeensuppl ied
29

Foranswer
s,What
sApp/
cal
l-
0746711892
 (i
v) Goodssol dtoJamilarTr
adershad
beenoverpr
icedbyShs4,000.
21.Outl
i
nef ourcondi
tionsunderwhichawarehousemaybeconsi
der
edt
obeoper
ati
ng
ef
fi
cientl
y. (
4mks)

22.Hi
ghl
i
ghtf
ouradv
ant
agesofpr
omot
ingsal
est
hrought
hei
nter
net
.
(
4mks)

23.Zawadi
oper
atesahar
dwar
ebusi
nessi
nherhomet
own.Out
li
nef
ourmet
hodsshemay

Uset
odeter
minepr
icesf
orhergoodsot
hert
hant
hef
orcesofdemandandsuppl
y
(4mks)

24.Hi
ghl
i
ghtf
ourf
act
orst
hataf
ir
m mayconsi
derwhendeci
dingont
hegoodst
opr
oduce
(
4mks)

25.Stat
efourf
eat
uresofaper
fect
lycompet
it
iv
emar
ket
.
(4mks)

30

Foranswer
s,What
sApp/
cal
l-
0746711892
 565/
1
BUSI
NESSSTUDIES
PAPER1
OCT/NOV2013
2HOURS

1.Out
li
nefourwaysinwhi
chbusi
nessst
udi
esmaybeofbenef i
ttoani
ndi
vidual
.
(4mks)
2.Hi
ghli
ghtf
ourexter
nalf
act
orst
hatmaynegat
ivel
yinf
luencet
heoper
ati
onsofa

busi
ness. (
4mks)

3.St
atef
ourchar
act
eri
sti
csofasuccessf
ulent
repr
eneur
. (
4mks)

4.St
atef
ourf
unct
ionsofanof
fi
ce. (
4mks)

5.Fi
l
lther
elev
antbr
anchesoft
radei
nthedi
agr
am gi
venbel
ow; (
3mks)

Tr
ade

6.Thepar
ti
cipant
sinat
wosect
oreconomyar
ehousehol
dsandf
ir
ms.I
dent
if
y

t
her
elev
antpar
ti
cipant
sineachoft
hest
atement
sgi
venbel
ow: (
4mks)

St
atement Par
ti
cipant
a.Pay
mentf
orgoodsandser
vices a.
b.sal
eoff
act
orsofpr
oduct
ion b.
c.pay
mentf
orf
act
orsofpr
oduct
ion c.
d.sal
eofgoodsandser
vices d.
31

Foranswer
s,What
sApp/
cal
l-
0746711892
7.Thef
oll
owi
ngbal
anceswer
eext
ract
edf
rom t
hebooksofWekesaTr
ader
son

31stDecember ,2009.
It
ems Shs
Capital 500,000
Cashi nhand 20,000
Buil
di ngs 200,000
Furniture 25,000
Mot orv ehi
cle 400,000
Creditors 18,000
Debt ors 36,000
Bank 100,000
Bankl oan 263,000

Usi
ngt heabov
einfor
mati
on,
prepar
eWekesaTr
ader
’sTr
ial
Bal
ance
on31stDecember
,2009. (
5mks)

8.Thef ol
lowinginformat
ionrel
atest
oKari
butrader
sfort
hey earended
st
31 December2008.
Detail
s Shs
Fixedasset s 1,840,000
Cur r
entasset s 400,000
6y earbankl oan 600,000
Cur r
entliabi
li
ti
es 150,000
Det er
mineowner ’
scapi
talusi
ngthei
nfor
mationgi
venabov e. (
4mks)
9.St
atet
het
ypeofunempl
oymentr
elat
ingt
oeachoft
hef
oll
owi
ngdescr
ipt
ions:
(4mks)

(
a)Causedbyal t
ernatingt r
adingpatternsoccurringatsi
milart
imes.
(
b)Ari
seswher ewor kershav emor eskill
sandhi gherqual
if
icat
ionsthan
thej
obr equi
rement s.
(
c)Ari
sesoutofami smat chbetweent heski l
lspossessedbypot ent
ial
employeesandt hel ocati
onoft hejobsav ail
able.
(
d)Ari
seswhenpeopl ear eunwill
i
ngt ot akeupjobsduet olowpay .

10.
Highl
i
ghtf
ourci
rcumst
ancesunderwhi
cht
hecapi
tal
ofabusi
nessmaychange.
(4mks)

11.
Bel
owar
esomeent
ri
esi
nthecashbookofRomanoTr
ader
sfort
hemont
hofJul
y2010.

Dr CASHBOOK Cr
Date Detai
ls Cash Bank Dat e Detai
ls Cash Bank
(2010) (Shs) ( Shs) (Shs) (Shs)
July1 Balb/d 15,000 Jul
y1 Balb/d 100,000
July6 Cash 20,000 Jul
y6 Bank 20,000
July20 Sal
es 15,000 Jul
y15 Wages 5, 000
July28 Debtor
s 20,000 Jul
y29 Stock 10,
000
32

Foranswer
s,What
sApp/
cal
l-
0746711892
 Jul
y31 Bal
c/d 10,
000

St
atet
hemeani
ngoft
hef
oll
owi
ngent
ri
es: (
4mks)
(
a)Jul
y1,
2010Balanceb/
d,bankcol
umn,shs100,
000
(
b)Jul
y6,
2010cashshs20,000andbankshs20,
000

(
c)Jul
y28,
2010debtorsshs20,
000
(
d)Jul
y31,
2010Balancec/dshs10,
000

12.
Out
li
neoneci
rcumst
anceunderwhi
cheachoft
hef
oll
owi
ngsour
ce

document
smaybei
ssuedbyat
rader
: (
4mks)

(
a)Debitnote
(
b)I
nv oi
ce
(
c)Creditnot
e
(
d)Quotation

13.
Namef
ourdocument
sthatmayber
equi
redbyt
her
egi
str
arofcompani
es

i
nor
dert
oregi
sterapubl
i
cli
mit
edcompany
. (
4mks)

14.
Out
li
nef
ourmeasur
est
hatacount
rycant
aket
oreducet
hel
evel
ofi
nfl
ati
on.(
4mks)

15.
Outl
inef
ourfactor
sthatmaymakeapr
oducert
oby
-passt
hewhol
esal
er
whendi
str
ibut
inggoods. (
4mks)

16.
Highl
i
ghtf
ourbenef
it
sthatacount
rywoul
dgetbydev
elopi
ngher

i
nfr
ast
ruct
ure. (
4mks)

17.
Stat
efourbenef
it
sofabondedwar
ehouset
othegov
ernment
. (
4mks)

18.
Out
li
nef
ourqual
i
tiesofasuccessf
ulsal
esper
son. (
4mks)

19.
Highl
i
ghtf
ourf
act
orst
hatmaycauset
hesuppl
ycur
vet
oshi
ftt
other
ight
.(4mks)

33

Foranswer
s,What
sApp/
cal
l-
0746711892
20.
Out
li
nef
ourposi
ti
veef
fect
sthatpr
oduct
ionact
ivi
ti
esmayhav
eon

communi
tyheal
th. (
4mks)

21.
Stat
efourbasi
cfeat
uresofamar
ket
. (
4mks)

22.
Out
li
nef
ourf
eat
uresofapar
ast
atal
s. (
4mks)

23.
Out
li
nef
ourci
rcumst
ancesi
nwhi
cht
hegov
ernmentmaybei
nvol
ved

i
nbusi
ness. (
4mks)

24.
Highl
i
ghtf
ourf
act
orst
hatat
radermayconsi
derwhenchoosi
ngameans

oft
ranspor
t. (
4mks)

25.
Stat
efourr
easonsf
orpr
ivat
izi
ngpubl
i
ccor
por
ati
ons. (
4mks)

565/
1
BUSI
NESSSTUDIES
PAPER1
OCT/NOV2014
2HOURS

1. Thef
oll
owingaredescri
pti
onsoffeatur
esofhumanwants.I
dentif
ythe
f
eatur
esthatr
elatetothedescr
ipti
onsi
nthespacespr
ovided. (
4mar
ks)

Descr i
pti
on Feat
ure
(
a)Aper sonisunabletofull
y
sati
sfyallwants.
(
b)Oncesat i
sfi
ed,theyhavea
tendencyofbeingfeltagain.
Somewantsar
esati
sfi
ed
(
c)toget
her
(
d)Thesamewantcanbe

34

Foranswer
s,What
sApp/
cal
l-
0746711892
 sati
sfi
edusi
ngdi
ff
erent
resour
ces.

2. Nametwooccupat
ionst
hatr
elat
etoeachoft
hepr
oduct
ionact
ivi
ti
es
gi
venbel
ow: (3marks)

(
i)
(
a) Ext
ract
ion
(
ii
)

(
i)
(
b) Const
ruct
ion
(
ii
)

(
i)
(
c) Di
rectser
vice
(
ii
)

3. Out
li
nef
ourt
askst
hatmaybecar
ri
edoutbyar
ecept
ioni
sti
nanof
fi
ce. (
4mar
ks)

4. Hi
ghli
ghtf
ourci
rcumst
ancesi
nwhi
chachequemaybeusedasa
meansofpayment. (
4mar
ks)

5. Hi
ghli
ghtfouract
ivi
ti
est
hatmaybecar
ri
edouti
nast
ockexchange
market. (
4mar
ks)

6. Out
li
nef
ourf
eat
uresofl
i
ner
sinseat
ranspor
t. (
4mar
ks)

7. Statef
ivety
pesofi
nfor
mat
iont
hatamanagermaycommuni
cate
tothej
uniors. (5mar
ks)

8. Expl
aint
hemeani
ngoft
hef
oll
owi
ngt
erms: (
4mar
ks)
(a) I
nsured
(b) I
nsurance

9.I
nthespacespr
ovidedbel
ow,
indi
cat
ewhet
herthefoll
owi
ngfact
orscause
movemental
ongthedemandcurv
eorashi
ftofthedemandcurv
e. (
3mar
ks)

Fact
or Mov
emental
ongorshif
tof
(
a) Changei
nincome. thedemand
35

Foranswer
s,What
sApp/
cal
l-
0746711892
 cur
ve.
t
hedemand
(
b) Changei
npr
ice. cur
ve.
t
hedemand
(
c) Changei
nweat
her
. cur
ve.

10.Hi
ghl
i
ghtf
ourr
olespl
ayedbyt
hebr
okeri
nthechai
nofdi
str
ibut
ion. (
4mar
ks)

11.Thefoll
owingdiagr
am r
epresent
stheci
rcul
arf
lowofi
ncomei
nat
wo
sect
orclosedeconomy.

I
dent
if
ytwof
act
orsr
epr
esent
edbyeachoft
hear
rowsl
abel
l
edaandb. (
4mar
ks)

12.Fi
l
lint
hemi
ssi
ngf
igur
esi
nthet
abl
ebel
ow: (
4mar
ks)

FA CA C L
(
a) 275,
500 315,
000 115,
500
(
b) 182,
000 108,
700 217,
100
(
c) 76,
400 123,
100 91,
900
(
d) 313.
450 211,
340 189,
170

13.Mheshi
miwaLt
d.hadt
hef
oll
owi
ngl ancesasat31s'
edgeraccountbal May2010:

Det
ail
s Shs.
Pur
chases 3.
880
Sal
es 3.
350
Ret
urnsoutwards 150
Ret
urnsinwar
ds 160

36

Foranswer
s,What
sApp/
cal
l-
0746711892
 D.Si
mola(Debtor
) 2,
550
P.Mwende(Credi
tor
) 3,100
Wages 800
Cash 960
Capi
tal 1,
750
Fol
l
owi
ngi
saformatoft
hedebitsi
deofathr
ee-
col
umncash-
book:

14.f
oll
owingi
saf
ormatoft
hedebi
tsi
deofat
hree-
col
umncash-
book:
DATE V W X Y

Namet
hecol
umnsl
abel
l
edV.W,
XandY. (
4mar
ks)

15.Outl
i
nefourf
unct
ionsoft
heI
nter
nat
ional
Bankf
orReconst
ruct
ion
andDev
elopment
. (
4mar
ks)

16.St
atef
ourdi
sadv
ant
agesofbar
tert
rade. (
4mar
ks)

17.Thef
oll
owi
ngt
ransact
ionsr
elat
etoJel
i
moSt
ores:

a)10th Oct
( ober2010,
soldunusedst
ati
oneryforSh3,
000oncredi
t
toK.Likia.
rd
(
b)23 Oct ober2010,boughtamotorvehi
cleoncredi
tfr
om Onj
wari
a
Mot orsforSh700,
000.
Requi
red:Recor
dtheabov
etr
ansact
ionsi
nthegener
alJour
nal
giv
enbel
ow:
(4mar
ks)

Dat
e Par
ti
cul
ars Fol
io Dr
. Cr
.

18.Li
stf
ourl
evel
sofi
nfl
ati
on (
4mar
ks)

19.Manycountr
iesi
nAf r
ica,Lat
inAmericaandAsi
aareconsi
der
edt
obe
under
-devel
oped.Outl
inefourchar
acter
ist
icst
heyhav
eincommon. (
4mar
ks)

20.Madam Emorooper
atesamat at
ubusiness.St
atef
ourf
act
orsi
nthei
nter
nal
env
ironmentt
hatmayinf
luencethebusi
ness. (
4mar ks)
21.Hi
ghl
i
ghtf
ourr
easonsf
orwhi
chbusi
nessesshoul
dobser
veet
hical
pr
act
ices. (
4mar
ks)
37

Foranswer
s,What
sApp/
cal
l-
0746711892
 22.St
atef
ourmer
it
sofpr
omot
ingpr
oduct
sthr
oughper
sonal
sel
l
ing. (
4mar
ks)

23.
Thef
oll
owi
ngi
nfor
mat
ionr
elat
est
oKi
bokoTr sasat31s'
ader December2010.

Detail
s Shs
Totaldr
awings 400,000
Addedinvest
ments 800,000
sl
Capit
alon31 Dec2010 7.000.000
Profi
t 3,
100,000

Cal
cul
ateKi
boko'
sini
ti
alcapi
tal
. (
3mar
ks)

24.
Out
li
nef
ourposi
ti
vei
mpl
i
cat
ionsofay
out
hful
popul
ati
ont
oaneconomy
.(4mar
ks)

25.PQLt
dhadt
hef
oll
owi ancesasat31stDecember2012.
ngbal

Sales 23498000
Stock1/ 1/2012 57,140
Returninwar ds 27,200
Purchases 162,900,000
Stock31/ 12/2012 86340

Pr
epar
ePQ’
sTr
adi
ngAccountf
ort earended31stDecember2012.
hey (
5mar
ks)

565/
1
BUSI
NESSSTUDIES
PAPER1
OCT/NOV2015
2HOURS
1.Whatar
ether
easonst
hatwoul
dmakeani
ndi
vi
dual
engagei
nbusi
ness? (
4mks)

2.Li
stf
ourt
ypesofut
il
it
yandt
hepr
oduct
ionact
ivi
tyassoci
atedwi
theachoft
hem.(
4mks)

3.Out
li
nef
ourway
sinwhi
cht
heof
fi
cef
aci
l
itat
esef
fect
ivehandl
i
ngofdocument
s.(
4mks)

4.Hi
ghli
ghtfourfact
orsthatmayinf
luenceaconsumertopur
chaseproduct
sfrom
akioskrat
herthanasupermarket
. (
4mks)
5.St
atefourci
rcumstancesunderwhichhir
epurchasemaybeusedtoacquir
egoods.
(4mks)

38

Foranswer
s,What
sApp/
cal
l-
0746711892
6.Gi
vef
ourr
easonsf
ort
hei
ncr
easeduseofmobi
l
ephonesi
nbanki
ng (
4mks)

7.Outl
inefourmethodsthatt
heGovernmentofKeny
ausestoregul
atebusi
ness
acti
vi
ti
es. (
4mks)
8.Stat
efourdisadvant
agesofusi
nginter
netasameansofcommunicati
on. (
4mks)

9.St
atef
ourdi
ff
erencesbet
weenl
i
feassur
anceandgener
ali
nsur
ance. (
4mks)

10.Gi
vef
ourr
easonsf
orobser
vinget
hical
pract
icesi
npr
oductpr
omot
ion. (
4mks)

Li
feAssur
ance Gener
alAssur
ance

11.Thegr
aphgi
venbel
owr
epr
esent
sthedemandandsuppl
ycur
vesofmi
l
k: (
4mks)

St
atefoureffectsofashif
tofthedemandcur vetotheri
ght
. (
4mks)
12.Outl
i
nef ourdisadvant
agesthatamanuf act
urerwoul
dsuff
eri
fwhol
esal
ers
wereeli
mi natedfr
om thechainofdi
str
ibuti
on. (4mks)

13.Thef
oll
owi
ngbal
ancesheetwasincorrect
lypr
epared:
PEMBETATUTRADERS
BALANCESHEET
FORTHEYEARENDED31. 12.12
KSH ksh
Stock 5000 Furnit
ure 50,000
Bankover
draft 5000 Debtors 7000
Cash 9,000 Capi
tal 66000
19,000 123, 000

Pr
epar
eacor
rect
edbal
ancesheet
. (
4mks)

39

Foranswer
s,What
sApp/
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0746711892
14.Thef
oll
owingf iguresr el
atet
ojumboTradersfort
hey
earended31.
12.
13
Det ail
s kshs
Capital(31.12.13) 940,000
Netloss 20,000
Additi
onal investment 420,000
Mont hlydrawi ngs 5,000
Det
erminet hecapi talasat1.
01.
13 (
4mks)

15.I
dent
if
ytheledgersi
nwhi
cht
hefol
lowi
ngaccount
sar
emai
ntai
ned. (
5mks)
ACCOUNT LEDGER
Pendo(Debtor
)
machinery
Rent
Capit
al
Juma(credi
tor
)

16.Li
stt
hreel
evel
sofi
nfl
ati
on (
3mks)

17.Namet hedocumentsdescr
ibedbythest
atementsgi
venbel
owasusedin
i
nter
nati
onaltr
ade: (4mks)
a)Requestsforpay
mentbef or
egoodsaredel
iv
ered

b)Showsowner
shi
port
it
leofgoodsi
mpor
ted

c)Showst
hecount
ryofmanuf
act
ureofgoods

d)Showst
het
ranspor
tat
ionchar
gesf
orgoods

18.Thefol
l
owi
ngpurchasesret
urnsjour
nalrel
atest
of ar
asitr
ader
s:
PURCHASESRETURNSJOURNAL
DATE DETAI LS I
NVOI CENO. FOLIO AMOUNT
2012
MARCH KSH
1 junior R22 PL1 2000
3 Mi misuppl
ies 100 PL2 4000
4 Kili
manjaro 30 PL5 5000
GL4 11,
000

Postt
hei
nfor
mat
ionabov
etot
her
elev
antl
edgeraccount
s. (
4mks)

19.Out
li
nef
ourgoal
sofdev
elopmentt
oacount
ry. (
4mks)

20.Thef
oll
owi
ngi
nfor
mat
ionr
elat
est
okahawaTr sasat31stDecember2012.
ader

40

Foranswer
s,What
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0746711892
 Stock 1.1.12 ksh80,000
Stock 31.1.12 ksh120,000
Purchases ksh1,
000,000
Mar gi
n 20%
Required:
Prepareatradi
ngaccount.
(
5mks)

21.St
atefourr
easonst
hatmakei
tnecessar
yforf
ir
mst
omai
ntai
naheal
thy
envi
ronment. (
4mks)

22.Hi
ghl
i
ghtf
ourbenef
it
sofabusi
nesspl
ant
oanent
repr
eneur
. (
4mks)

23.Out
li
nef
ourbenef
it
sofseat
ranspor
tov
erai
rtr
anspor
t. (
4mks)

24.I
nwhi
chway
scanani
nvest
orbenef
itf
rom t
hest
ockexchange? (
4mks)

25.St
atet
hreecl
ausesf
oundi
nthememor
andum ofAssoci
ati
on. (
3mks)

565/
1
BUSI
NESSSTUDI ES
PAPER1
OCT/NOV2016
2HOURS
565/
1
1.
Stat
efourext
ernal
fact
orst
hatmaynegat
ivel
yinf
luencet
heoper
ati
onsoft
he
busi
ness (
4mar
ks)
2.
Highl
i
ghtf
ourbenef
it
sofabusi
nesspl
ant
oanent
repr
eneur (
4mar
ks)
3.
Stat
efourway
sinwhi
chagoodf
il
li
ngsy
stem mayf
aci
l
itat
etheoper
ati
onsofan

41

Foranswer
s,What
sApp/
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0746711892
 of
fi
ce (
4mar
ks)
4.
Highl
i
ghtf
ouract
ivi
ti
est
hatmaybecar
ri
edouti
nast
ockexchangemar
ket
(
4mar
ks)
5.
Out
li
enf
ourci
rcumst
ancesunderwhi
chacooper
ati
vesoci
etymaybedi
ssol
ved (
4
mar
ks)
6.
Out
li
nef
ourmet
hodst
hatt
hegov
ernmentofKeny
ausest
oregul
atebusi
ness
act
ivi
ti
es. (
4mar
ks)
7.
Stat
efourway
sinwhi
chay
out
hful
popul
ati
onmaybeusef
ult
oaneconomy (
4
mar
ks)
8.
Out
li
neoneci
rcumst
anceunderwhi
cheachoft
hef
oll
owi
ngt
elecommuni
cat
ion
ser
vicesmaybeused (
4
mar
ks)
i
)Pagi
ng
i
i
)Facsi
mil
e(f
ax)
i
i
i)Radi
ocal
l
i
v)Tel
ex

9.
.Thef
oll
owingt
ransacti
onsr
elat
etoJeli
moSt or
es:
1
(a) 10"Oc t
ober2015sol
dunuse
dstati
one
ryforSh3,
000onc
redi
ttoK.
Lik
ia.
(
b) 23rtiOc
tober2015,
boughtamot
orv
ehi
cl
eonc
redi
tfr
om Onj
war
iaMot
orsf
or
Sh700,
000.
Requi
red:
Recor
dtheabov
etr
ansact
ionsi
nthegener
alJour
nal
giv
enbel
ow: (
4mar
ks)
Dat
e Par
ti
cul
ars F
oli
o Dr
. Cr
.

10.•Stat
efourf
eat
uresofani
nsur
abl
eint
eres
t, (
4
mar
ks

42

Foranswer
s,What
sApp/
cal
l-
0746711892
11.
Stat
efourf
eat
uresofapar
ast
atal (
4mar
ks)

12.
Thegr
aphgi
venbel
owr
epr
esent
sthedemandandsuppl
ycur
vesofmi
l
k

St
atef
ouref
fect
sofashi
ftoft
hedemandcur
vet
other
ight (
4mar
ks)
13.
Out
li
nef
ourf
unct
ionsoft
hewor
ldbank (
4mar
ks)
14.
Out
li
nef
ourway
sofr
educi
ngt
hel
evel
ofunempl
oymenti
nKeny
a (
4mar
ks)

15. Thef ol
lowingbal
anceswer
eext
ract
edf
rom t
hebooksofHi
ghl
i
feGener
alSt
oreson
SI
31 December2015.
I
tem Ksh
Landandbui
l
dings 650,
000
St
ock 470,
000
Bankov
erdr
aft 80,
000
Debt
ors 350,
000
10y
earBa
nkL
oan 500,
000
Cr
edi
tor
s 220,
000
Ca
sh 50,
000
Mot
orVa
n 150,
000
Ca
pit
a! 9
Re
qui
red:
Pre
par
ethebal
anc
eshee
tofHi
ghl
i
feGe
ner
alSt
orsasat31stDe
e cembe
r2015.
(4
43

Foranswer
s,What
sApp/
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0746711892
mar
ks)
16. Out
li
nef
ourc
irc
ums
tanc
esi
nwhi
cht
hegov
ernmentmaybei
nvol
vedi
nbus
ines
s. (
4
mar
ks)

17.
Ident
if
ythel
edger
sinwhi
cht
hef
oll
owi
ngaccount
sar
ekept (
4
mar
ks)
ACCOUNT LEDGER
i
) Pendo(
debt
or)
(
ii
) Machi
ner
y
(
ii
i
) Re
nt
(
iv) Capi
t
al
18. Thefoll
owingdi
agr
am r
epr
esent
stheci
rcul
arf
lowofi
ncomei
nat
wosect
or
closedeconomy.

I
dent
if
ytwof
act
orsr
epr
esent
edbyeac
hoft
hear
rowsl
abel
edaandb (
4Mar
ks)
19.
Stat
efourr
easonsf
orpr
ivat
izi
ngpubl
i
ccor
por
ati
ons.
20.
Stat
efourr
easonsf
ort
hei
ncr
easesuseofcel
lphonesi
nbanki
ng (
4mar
ks)
21.Li
stf
oursour
cesofpubl
i
cfi
nance (
4mar
ks)
22.St
atet
wosi
tuat
ionsi
nwhi
cheachoft
hef
oll
owi
ngt
ypesofi
nfl
ati
onmayoccur
i
)Cr
eepi
ngi
nfl
ati
on (
2mar
ks)
i
i
)Hy
per
inf
lat
ion (
2mar
ks)

23.
Out
li
nef
ourf
act
orst
hatmaymakeapr
oducert
oby
-passt
hewhol
esal
erwhen

44

Foranswer
s,What
sApp/
cal
l-
0746711892
 di
str
ibut
inggoods (
4mar
ks)
24.
Out
li
nef
ourgoal
sofdev
elopmentt
oacount
ry (
4mar
ks)
25.
Out
li
enf
ourchar
act
eri
sti
csofser
vices.
(
4mar
ks)

45

Foranswer
s,What
sApp/
cal
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0746711892
 46

Foranswer
s,What
sApp/
cal
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0746711892