845/1
ENTREPRENEURSHIP
EDUCATION
PAPER 1
2024
1
2 hours
2
UGANDA CERTIFICATE OF EDUCATION
INTERNAL MOCK EXAMINATION 2024
S4 ENTREPRENEURSHIP EDUCATION
PAPER 1
2 hours 30 minutes
INSTRUCTIONS TO CANDIDATES
This paper consists of sections A and B. It has five examination items.
Section A has three compulsory items.
Answer one item from Section B.
Answer four examination items in all.
Any additional item(s) answered will not be scored.
All answers must be written in the answer booklet(s) provided.
1
SECTION A
Answer all items in this section.
Item 1
Mr Okech started a poultry farm in his village called Kalwa using his personal
savings of shs 5,000,000. He started it as a small business offering good
quality products to the customers. He wants to enlarge his business to meet
the increasing demands of his customers but he lacks enough financial
resources, so he is in dilemma on what to do.
Task: Advise Mr Okech on;
(a) What to do in order to overcome the above challenge.
(b) How to plan for the finances of the farm.
(c) Benefits of doing business with other countries.
Item 2
Nakawuka is an entrepreneur operating a juice processing plant in Nyendo
town. She uses manual machines to process the juice but this lowers the
quantity of output. She is therefore planning to purchase new machines but
does not know where to buy them from. She employs 3 unskilled workers but
conflict over roles to perform. She also distributes juice directly to only
clients in Nyendo town ignoring other towns.
Task:
Guide Nakawuka on how to overcome the above challenges.
Item 3
Mafabi operates a car bond specializing in sale of Subaru vehicles. Recently,
he purchased a vehicle at a VAT exclusive price of UGX 70,800,000.
However, the vehicle got an accident during its transit to Uganda and while
at the scene of the accident, Mafabi was robbed of business cash worth
millions. He later sold the vehicle at a VAT Exclusive price of shs82,600,000
Task: Guide Mafabi on;
(a) Insurance policies he can undertake to minimise the above challenges.
(b)Opening up a bank account.
(c) Tax liability charged on the vehicle using a VAT rate of 18%.
2
SECTION B
Answer one item from this section.
ITEM 4
The following transactions were extracted from the books of Mukene and
sons Limited for the month of April 2024. The entrepreneur intends to find
out cash balance, bank balance and the total discounts that transpired.
April 1st balances brought forward from March:
Cash at hand shs 1,200,000
Cash at bank shs 5,500,000
Debtors
Njobe shs 2,000,000
Lindah shs 2,600,000
Kikayo shs 460,000
Creditors
Tom shs 1,100,000
Jane shs 2,200,000
Mark shs 500,000
April 2nd Njobe paid his account by cheque less 2½% cash discount.
April 10th issued a cheque to Mark in full settlement of his debt
deducting 5% cash discount.
April 12th withdrew cash from bank for business use shs 1,000,000.
April 16th received a cheque from Lindah in full settlement of her debt
less 2½% cash discount.
April 20th cash sales deposited directly on bank account shs 6,000,000
April 23rd Kikayo cleared his account by cash less 2% cash discount
April 28th issued a cheque to Tom deducting 2% cash discount
April 29th banked shs 100,000
April 30th paid Jane cheque less 2% cash discount
Task:
Help the entrepreneur to oganize the above information in the appropriate
cashbook.
3
ITEM 5
Traders of Nakaseero market usually purchase goods in large quantities. An
argument emerged amongst them about the difference between trade
discount and cash discount. Most of them assumed the same meaning for
the two concepts.
Task:
(a) Help them to overcome the above confusion.
(b) One of the traders above operates Smart Retailers and has presented
to you the following information for the month of May 2024.
May Balance brought forward from the previous month Cash
1 shs1,450,000; and Bank shs1,433,400.
Bought office equipment paying by cheque shs225,000
2 Cash sales shs37,500.
3 Cashed a cheque for shs60,000 for office use.
5 The following debtors paid their accounts by cheque in each case
7 deducting 5% cash discount: Mwesigye shs240,000, Karatunga shs
480,000 and Semwazi shs450,000.
Sold goods on credit to Asiimwe shs45,000
10 Cash purchases shs52,500.
15 Paid monthly rent in cash shs120,000.
16 Issued cheques to the following creditors in each case deducting 2½
18 % cash discount. Namakula shs 375,000 and Kyasa shs 225,000.
Received a commission in cash shs 80,000.
20 Banked cash keeping a balance of shs 100,000 in the cash till.
30
Task:
Help the trader to establish the cash balance, bank balance and
total of discounts as at the end of the month.
END
