KCSE Past Papers 2021 Business Studies Paper 2 (565/2)
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 5. (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
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