KCSE Business Studies Topical Questions and Answers

Name four ways of sending letters through the post office

5/11/2021

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Name four ways of sending letters through the post office. (4mks)

Four ways of sending letters through the post office

Ordinary post
Registered mail.
Express mail for faster delivery.
Poste restante
Business reply service
Telex
E-mail/E-letter
Speed post
Fax

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Indicate with a tick in the relevant column whether each of the following business transactions will increase or decrease the capital account balance.

5/11/2021

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Indicate with a tick in the relevant column whether each of the following business transactions will increase or decrease the capital account balance. (3mks)

(a) Increase
(b) Decrease
(c) Decrease

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On 1 May 2012, Nyaboke Traders had sh.160, 000 in cash and sh. 30, 000 bank overdraft. During the month, the following transactions took place.

5/11/2021

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On 1 May 2012, Nyaboke Traders had sh.160, 000 in cash and sh. 30, 000 bank overdraft. During the month, the following transactions took place.

May 20 received a cheque for sh. 90, 000 from a debtor
25 Paid telephone bills sh. 5, 000 in cash
30 Withdrew Sh. 40, 000 from bank for office use
From the above information prepare Nyaboke Trader cash book and balances it off. (4mks)

Solution

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The following balances were extracted from the books of Anyang wholesalers for the year ended 31 December, 2010

5/11/2021

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The following balances were extracted from the books of Anyang wholesalers for the year ended 31 December, 2010

Sh.
Sales………………………………………800, 000
Purchases…………………………………420, 000
Opening stock (1.1.2010) …………90, 000
Closing stock (31.12.2010)……………50, 000
Debtors……………………………………130, 000
Creditors…………………………………90, 000

Calculate (4mks)

(a) Margin

(b) Current ratio

(c) Rate of turnover

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The following balances were obtained from the books of Ole Nkanai Traders for the month ended 29 February 2012.

5/11/2021

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The following balances were obtained from the books of Ole Nkanai Traders for the month ended 29 February 2012.

Sh.
Purchases………… 24, 000
Sales……………… 420, 000
Equipment………… 120, 000
Furniture………… 300, 000
Debtors………… 60, 000
Creditors……… 20, 000
Expenses……… 140, 000
Capital………… 420, 000

Prepare a Trial balance of Ole Nkanai Traders for the month ended 29 February 2012. (5mks)

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Indicate the book of original entry used in recording each of the following transactions of Alex Traders.

5/11/2021

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Indicate the book of original entry used in recording each of the following transactions of Alex Traders. (4mks)

(a) Purchase Journal
(b) Sales Journal
(c) Purchase Return Journal
(d) Sales Return Journal

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The average consumer price for a tin of maize for various years in Trans-mara is shown in the table below.

5/11/2021

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The average consumer price for a tin of maize for various years in Trans-mara is shown in the table below.

The average consumer price for a tin of maize for various years in Trans-mara is shown in the table above.

Calculate the consumer index using year 2008 as the base year. (4mks)

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Outline four negative effects of a high taxation in an economy

5/11/2021

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Outline four negative effects of a high taxation in an economy. (4mks)

Negative effects of high taxation in an economy

Level of savings will go down.
Level of investments will go down
Level of production will go down.
It acts as a disincentive to hard work.
Level of foreign capital inflows will go down since many foreign investors will shift their production units to other countries with lower tax regimes.
The level of smuggling may increase as importers try to evade the tax.
The increased cost of production may lead to increases in prices, which result in inflation.

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State four factors that encourage entrepreneurship in Kenya

5/11/2021

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State four factors that encourage entrepreneurship in Kenya (4mks)

Factors that encourage entrepreneurship in Kenya

Government support/favourable government policies/funding
Entrepreneurial culture /cultural practices that encourage entrepreneurship.
Availability of capital/loans/credit facilities
Political stability/non political interferences
Availability of market/market information
Good infrastructure
Availability of security.
Health/fair competition.
Need for self-actualization/fulfillment.
Need to exercise power.
Need for self-reliance.
Good governance.
Availability of technology
Employment creation for self/others.
Training/Education in entrepreneurship.
Presence of role models.
Need for individual security against old age, sickness, or hardship.
Need for recognition by society/peer

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Outline four circumstances that lead to a trader declining in giving credit facilities to customers

5/11/2021

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Outline four circumstances that lead to a trader declining in giving credit facilities to customers. (4mks)

Circumstances leading to a trader declining in giving credit facilities to customers

Incase of unreliable customers/uncredit worthy customers.
Where stock level is too low.
Where customer has doubtful character.
Where customer order for goods beyond the ability of the seller.
When it is a business policy.
Where customers provide for longer credit period.
When the rate of stock turn-over is high

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The Manager of ENOOSAEN Sugar Company has vowed improve the company’s yield by 60% through labour motivation. State four ways by which he can achieve this.

5/11/2021

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The Manager of ENOOSAEN Sugar Company has vowed improve the company’s yield by 60% through labour motivation. State four ways by which he can achieve this.

Ways of labour motivation

Provision of adequate facilities.
Ensure proper remuneration.
Offer fringe benefits e.g lunch, trips etc.
Encourage positive competition.
Provide recreational facilities.
Training of workers.
Promote good working conditions.
Involve workers in decision making process.
Allocate duties according to areas of specialization.
Promote workers on merit.
Promote awards/rewards/gifts for good work attained.
Paying the workers promptly.
Provide them with job security.
Encourage team work.

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Name four ways of sending letters through the post office

Name four ways of sending letters through the post office. (4mks)

Indicate with a tick in the relevant column whether each of the following business transactions will increase or decrease the capital account balance.

Indicate with a tick in the relevant column whether each of the following business transactions will increase or decrease the capital account balance. (3mks)

On 1 May 2012, Nyaboke Traders had sh.160, 000 in cash and sh. 30, 000 bank overdraft. During the month, the following transactions took place.

On 1 May 2012, Nyaboke Traders had sh.160, 000 in cash and sh. 30, 000 bank overdraft. During the month, the following transactions took place.

Solution

The following balances were extracted from the books of Anyang wholesalers for the year ended 31 December, 2010

The following balances were extracted from the books of Anyang wholesalers for the year ended 31 December, 2010

Calculate (4mks)

(a) Margin

(b) Current ratio

(c) Rate of turnover

The following balances were obtained from the books of Ole Nkanai Traders for the month ended 29 February 2012.

The following balances were obtained from the books of Ole Nkanai Traders for the month ended 29 February 2012.

Prepare a Trial balance of Ole Nkanai Traders for the month ended 29 February 2012. (5mks)

Indicate the book of original entry used in recording each of the following transactions of Alex Traders.

Indicate the book of original entry used in recording each of the following transactions of Alex Traders. (4mks)

The average consumer price for a tin of maize for various years in Trans-mara is shown in the table below.

The average consumer price for a tin of maize for various years in Trans-mara is shown in the table below.

Calculate the consumer index using year 2008 as the base year. (4mks)

Outline four negative effects of a high taxation in an economy

Outline four negative effects of a high taxation in an economy. (4mks)

State four factors that encourage entrepreneurship in Kenya

State four factors that encourage entrepreneurship in Kenya (4mks)

Outline four circumstances that lead to a trader declining in giving credit facilities to customers

Outline four circumstances that lead to a trader declining in giving credit facilities to customers. (4mks)

The Manager of ENOOSAEN Sugar Company has vowed improve the company’s yield by 60% through labour motivation. State four ways by which he can achieve this.

The Manager of ENOOSAEN Sugar Company has vowed improve the company’s yield by 60% through labour motivation. State four ways by which he can achieve this.

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Archives

​Name four ways of sending letters through the post office. (4mks)

​Indicate with a tick in the relevant column whether each of the following business transactions will increase or decrease the capital account balance. (3mks)

​On 1 May 2012, Nyaboke Traders had sh.160, 000 in cash and sh. 30, 000 bank overdraft. During the month, the following transactions took place.

Solution

​The following balances were extracted from the books of Anyang wholesalers for the year ended 31 December, 2010

​Calculate (4mks)

(a) Margin

​(b) Current ratio

(c) Rate of turnover ​

​The following balances were obtained from the books of Ole Nkanai Traders for the month ended 29 February 2012.

​Prepare a Trial balance of Ole Nkanai Traders for the month ended 29 February 2012. (5mks)

Indicate the book of original entry used in recording each of the following transactions of Alex Traders. (4mks)

​The average consumer price for a tin of maize for various years in Trans-mara is shown in the table below.

​Calculate the consumer index using year 2008 as the base year. (4mks)

​Outline four negative effects of a high taxation in an economy. (4mks)

​State four factors that encourage entrepreneurship in Kenya (4mks)

Outline four circumstances that lead to a trader declining in giving credit facilities to customers. (4mks)

​The Manager of ENOOSAEN Sugar Company has vowed improve the company’s yield by 60% through labour motivation. State four ways by which he can achieve this.

Categories

Archives

Name four ways of sending letters through the post office. (4mks)

Indicate with a tick in the relevant column whether each of the following business transactions will increase or decrease the capital account balance. (3mks)

On 1 May 2012, Nyaboke Traders had sh.160, 000 in cash and sh. 30, 000 bank overdraft. During the month, the following transactions took place.

The following balances were extracted from the books of Anyang wholesalers for the year ended 31 December, 2010

Calculate (4mks)

(b) Current ratio

(c) Rate of turnover

The following balances were obtained from the books of Ole Nkanai Traders for the month ended 29 February 2012.

Prepare a Trial balance of Ole Nkanai Traders for the month ended 29 February 2012. (5mks)

The average consumer price for a tin of maize for various years in Trans-mara is shown in the table below.

Calculate the consumer index using year 2008 as the base year. (4mks)

Outline four negative effects of a high taxation in an economy. (4mks)

State four factors that encourage entrepreneurship in Kenya (4mks)

The Manager of ENOOSAEN Sugar Company has vowed improve the company’s yield by 60% through labour motivation. State four ways by which he can achieve this.