KCSE Past Papers 2021 Business Studies Paper 2



1. (a) Explain five circumstances under which a producer may sell goods directly to the consumer. (10 marks)


(b) Explain each of the following terms of sale as used in international trade: (10 marks)


(i) Ex-works


(ii) Cost and Freight


(iii) FOB


(iv) Landed


(v) In Bond


2. (a) Explain five factors that may discourage entrepreneurship in Kenya.(10 marks)


(b) Explain five demerits of indirect taxes.(10 marks)


3. (a) Explain five errors that may not be detected in a trial balance.(10 marks)


(b) Explain five documents prepared by the seller after receiving an order up to the point of delivery. (10 marks)


4. (a) Explain five reasons that may make a firm operate on a small scale.(10 marks)


(b) The following information was extracted from the books of Ushirika Traders as at 31st December 2020.(10 marks)


Details

Ksh

Gross profit

94,000

Commission Received

32,000

Carriage Outwards

8,000

General Expenses

15,000

Discount Received

29,000

Total Fixed Assets

1,100,000

Insuarance

17,000

Capital

490,000

Drawings

37,000

Long Term Liabilities

610,000

Discount Allowed

12,000

Commission Allowed

4000

Current Liabilities

162,000

Current Assets

192,000

Salaries

22,000


(a) Explain five reasons that make it necessary for the Government to train business people.( 10 marks)

(b) Explain five problems that the Kenyan Government may experience when implementing the Vision 2030. (10 marks)


6. (a) Explain five advantages of written communication. (10 marks)


(b) Use the transaction given below to prepare Patel Traders Two Column Cash Book fOr the month of February 2020. (10 marks)


1st Feb. : Had Ksh 1,200 cash in hand and a bank overdraft of Ksh 1000


2nd Feb. : Used cash to pay water bill Ksh 200, electricity Ksh 100 and wages Ksh 400


3rd Feb. : Received a cheque of Ksh 14,000 from Daisy.


5th Feb. : Sold goods worth Ksh 7,000 in cash.


7th Feb. : Paid for goods bought for resale worth Ksh 5,000 by cheque.


9th Feb. : Received a cheque of Ksh 10,000 from the Cooperative Society as earning from dividends.


10th Feb.: Withdrew Ksh 2,000 from the bank for family use


13th Feb.: Received a cheque of Ksh 10,000 from Petro.


15th Feb.: Deposited Ksh 1,000 from the office into the business bank account.


17th Feb.: Paid Manu by cheque Ksh 1,000


27th Feb.: Used the money in the bank to purchase furniture leaving only a balance Ksh 2,000



Questions and Answers 2021 KCSE Business Studies paper 2


Coming Soon!