POST MOCK 2024
BUSINESS STUDIES
565/2
PAPER 2
TIME: 2½ HOURS
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NAME……………………………………………… SIGN………………………..
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INDEX NO……………………………………… ADM NO……………………
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Kenya Certificate of Secondary Education.
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INSTRUCTIONS TO CANDIDATES;
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a) Write your name and admission number in the spaces provided above.
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b) Sign and write the date of examination in the spaces provided above
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c) This paper consists of six questions.
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d) Answer any five questions in the spaces provided after question six.
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e) All questions carry equal marks
FOR EXAMINERS USE ONLY.
Question Maximum score Candidate’s score
20
20
20
20
20
1. a) Explain five factors to consider when choosing office equipment. (10marks)
b)Explain the causes and remedies of the following types of unemployment. 10 marks)
i) Seasonal unemployment
ii) Structural unemployment
iii) Disguised unemployment
iv) Residual unemployment
v) Involuntary unemployment
2. a) Explain five importance of insurance to an economy. (10marks)
b) On 1st march 2019, Ukwala traders had ksh 95,000 in hand and a bank overdraft of ksh 15,000.
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During the month, the following transactions took place.
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March 2: Bought goods for resale in cash ksh 68,000.
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March 3: Cash sales banked, ksh 22,000
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March 9: Paid Anyang’ a creditor ksh, 12,880 by cheque in full settlement of his account after
deducting 8% cash discount.
March 11: Paid salaries ksh 14,000 in cash. as
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March 16: Received a cheque of ksh 40,200 from Sakaya after allowing him a cash discount of ksh
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1,800.
March 20: Shamim, a debtor paid her account of ksh 55,000 by cheque less 10% cash discount.
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March 24: Withdraw 26,000 from bank for office use.
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March 27: Took ksh 9,000 cash to pay his brother’s medical bill.
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March 28: Deposited all the cash into bank except ksh 14,400.
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Required: prepare a three-column cashbook and balance it off. (10 marks)
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3. a) Explain five features of oligopoly. (10 marks)
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b) Explain the difference between partnerships and cooperative societies forms of business units.
(10marks)
4. a) Explain five reasons for continued existence of small firms in an economy. (10marks)
b) Outline five channels that can be appropriate for the distribution of exporting tea to France.
(10marks)
5. a) Explain five reasons for government involvement in business. (10 marks)
b)Explain five documents sent by the buyer to the seller in Home trade. (10marks)
6. a) Explain four unethical practices in product promotion. (8marks)
b) The following trial balance relates to the business of OMASAJA Traders for the period ended
31st March 2023.
OMASAJA TRADERS
TRIAL BALANCE
AS AT 31ST MARCH 2023
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Shs. Shs.
General expenses 120,000
Rent expenses 46,000
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Telephone expenses 20,000
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Carriage inwards 28,000
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Salaries 360,000
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Sales 4,000,000
Purchases 2,400,000
Discount received as 36,000
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Sales returns 40,000
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Motor vehicle 500,000
Debtors 300,000
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Stock (1st April 2022) 200,000
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Land and buildings 2,000,000
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Cash at bank 120,000
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Cash in hand 12,000
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Capital 1,850,000
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Drawings 80,000
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Creditors 240,000
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6,226,000 6,226,000
Additional information
Stock as at 31st March 2023 was valued at ksh. 100,000
Prepare:
i) A Trading profit and loss (7marks)
ii) A Balance sheet (5marks)
