I.R.E QUESTIONS AND ANSWERS

The lender should by no means charge interest on the money he/she lends
The debtor must keep his/ her promise to pay back money according to the agreed terms
The lender should give the money or property in good faith
The agreement to lend the money should be in a written form or done in the presence of witness.
Failure to pay a debt is a sin
A debtor include his debts in his/her will
The lender must demand the payment of his money if the debtor delays his payment
If the debtor dies he or she heirs have to pay the debt from his or her estate before they share of the state
A lender at his or her own wish can decide to forfeit or write off the debt in case the borrower fails to pay due to financial constraints.

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Highlight the Islamic teachings on buying and selling?

26/3/2021

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Highlight the Islamic teachings on buying and selling? (8marks)

Goods should be freely distributed
No over charging
Right to return if defective
Right to reject
No one should be forced
No hoarding
No cheating on weighing scales
Do not black mail the buyer.
No monopoly

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State four rules that a Muslim should observe before taking a loan from a bank.

21/3/2021

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KCSE IRE Paper 2 2010 Question 3(c) with Answers and Marking Scheme.

(c) State four rules that a Muslim should observe before taking a loan from a bank. (4 marks)

Rules to be observed by a Muslim before taking a loan from a bank

Ensure that the bank is Shariah compliant
Ensure that the loan to be taken will not attract any interest
Prove that the money given as loan has been generated through lawful means i.e. the bank should not engage in haram acts to make profits.
Ensure that there are witnesses to the loan transaction.
The agreement on the loan between him/her and the bank should be written down Managers/custodians of the bank should be Muslims who understand the Shariah regarding loan transactions.
Should understand the terms of the agreement before signing for the loan.

(4x1=4 marks)

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Give six reasons why record keeping is important in business transactions.

21/3/2021

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KCSE IRE Paper 2 2010 Question 3(b) with Answers and Marking Scheme.

(b) Give six reasons why record keeping is important in business transactions.(6 marks)

Reasons why Record Keeping is Important in Business transactions

In obedience to the teachings of the Quran.
In keeping with the Sunnah of the Prophet.
To avoid any doubts about the transactions. Evidence that a transaction actually took Place.
To accord justice/fairness to both parties.
Prevent quarrels, disputes and misunderstanding.
Buildings trust between the parties/prevents mistrust and suspicions.
Promotes honesty in business/for transparency and accountability in business.
Shows that the transactions were made by mutual consent not by coercion by one party.
Gives information on how the business is performing/doing. Gives information on the financial position of the business.
To act as a future reference.

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State the conditions of borrowing and lending money in Islam.

19/3/2021

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KCSE IRE Paper 2 2011 Question 3(c) with Answers.

(c) State the conditions of borrowing and lending money in Islam. (5 marks)

Conditions of borrowing and lending money

there should be no interest charged
both parties should be mature and of sound mind
there should be a written agreement signed by both parties
there must be witnesses to the transaction
the borrower should be allowed more time if he is unable to pay on time
date of paying back should be stated
money borrowed should be used for halai purposes
lender should not attach conditions or expect favours from the borrower

(5x 1=5 marks)

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Describe ﬁve measures that can be taken to guard against hoarding.

18/3/2021

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KCSE IRE Paper 2 2013 Question 3(c) with Answers.

c) Describe five measures that can be taken to guard against hoarding. (5 marks)

Measures taken to guard against hoarding

Open markets for competition and avoid monopoly.
Creating awareness in the society on the hannful effects of hoarding.
Introduction of stiff penalties (Taazir) against hoarders.
Boycotting businesses of the people who practice hoarding.
Naming and shaming hoarders.
Instilling values such as honesty and fair business practices in the people
Reminding business people on the importance of fearing Allah (Taqwa) in all their transactions and the punishment that await the hoarders in the hereafter.

(5 x 1 = 5 marks)

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Under what circumstances is a business contract considered invalid in Islam?

18/3/2021

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KCSE IRE Paper 2 2013 Question 3(b) with Answers.

b) Under what circumstances is a business contract considered invalid in Islam? (7 marks)

A sale is not valid unless there is an offer by the seller and acceptance by the buyer or his agent.
The transaction is invalid ‘if the offer and acceptance do not correspond i.e if the offered ‘price’ is one thousand and the buyer ‘accepts’ for ﬁve hundred.
A sale is invalid if the offer or acceptance is made conditional upon an event outside the agreement e.g ‘I sell it to you. should the rain fall.’
Parties to the contract must have reached the age of puberty and are sane. It is not a must that both are Muslims. _
Parties to the contract must not be forced to make the business contract. c
A business contract should not involve something that is impure in itself (najasa) e.g sale of pigs.
It is invalid to transact something which is not useful or unlawful e.g poison, musical instruments.
It is not valid to sell other people’s properties without their permission.
Any business contract or transaction that involves riba (interest) is invalid (Q.2:275; 2:278).
It is not valid to make a transaction or contract that includes an invalid stipulation e.g I buy your house provided you divorce your wife.

(7 x 1 = 7 marks)

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Describe seven benefits of keeping records in business transactions according to Islamic teachings.

10/3/2021

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KCSE IRE Paper 2 2015 Question 3(a) with Answers.

(a) Describe seven benefits of keeping records in business transactions according to Islamic teachings. (7 marks)

Benefits of keeping records in business transactions according to Islamic teachings

To serve as a reminder in what has been agreed between the parties in business
It is a clear proof or evidence of a concluded business transaction or contract
It specifies conditions of agreement or contract between the parties in a business dealing
It specifies the roles and obligations of each party in the contract
It acts as a deterrence to business conflicts
It can serve as an admissible piece of evidence in a court of law in the event of a dispute in a business transaction
In case of the death of one or both of the business partners, their respective heirs may be guided by the record in fulfilling their duties or obligations
Helps in computing and calculating the amount of zakat from the business
Helps in identifying strengths and weaknesses in one’s business, thus makes it easy to come up with the necessary changes to improve the business
It helps in calculating profit and loss as well as in the distribution of accrued profit or loss among the partners in the business.
It is a command of Allah whoever practice it is rewarded.

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Mention seven unlawful acts in trade.

10/3/2021

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KCSE IRE Paper 2 2017 Question 2(c) with Answers.

(c) Mention seven unlawful acts in trade. (7 marks)

Unlawful acts in trade

Charging interest (usury).
Selling prohibited goods.
Hoarding of goods.
Forgery e.g. of receipts, agreement documents.
Bribery e.g. to get tender.
Money laundering.
Cheating on quantity and weight of goods (Q. 83:3)
Selling expired goods.

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State lawful acts in commercial trade

5/3/2021

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KCSE IRE Paper 2 2006 Question 2(b) with Answers.

State lawful acts in commercial trade. (7 marks)

Lawful Acts in Commercial Trade

Trade in genuine wares and commodities/trade should not be in fake commodities.
Use of standards in trade e.g. weights, measures scales to determine quality/quantity.
There must be mutual trust/honesty between the buyer/customer and seller.
Records of business transactions must be kept e.g. agreements.
Source of seed money to start business must be legitimate/halal entrepreneurship.
There should be no monopoly of business.
Prices of commodities should not be fixed.
Customers who cannot pay promptly should be given time to pay.
No swearing in extracting business.
There should be mutual consent between buyer and seller.

(7 x 1 = 7 marks)

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Explain FOUR kinds of sale in trade

Explain FOUR kinds of sale in trade. (8 Marks)

Explain FOUR kinds of sale in trade.

Explain FOUR kinds of sale in trade. (8 Marks)

What are the Islamic teaching on matters of debt?

What are the Islamic teaching on matters of debt? (8marks)

Highlight the Islamic teachings on buying and selling?

Highlight the Islamic teachings on buying and selling? (8marks)

State four rules that a Muslim should observe before taking a loan from a bank.

KCSE IRE Paper 2 2010 Question 3(c) with Answers and Marking Scheme.

(c) State four rules that a Muslim should observe before taking a loan from a bank. (4 marks)

Give six reasons why record keeping is important in business transactions.

KCSE IRE Paper 2 2010 Question 3(b) with Answers and Marking Scheme.

(b) Give six reasons why record keeping is important in business transactions.(6 marks)

State the conditions of borrowing and lending money in Islam.

KCSE IRE Paper 2 2011 Question 3(c) with Answers.

(c) State the conditions of borrowing and lending money in Islam. (5 marks)

Describe ﬁve measures that can be taken to guard against hoarding.

KCSE IRE Paper 2 2013 Question 3(c) with Answers.

c) Describe five measures that can be taken to guard against hoarding. (5 marks)

Under what circumstances is a business contract considered invalid in Islam?

KCSE IRE Paper 2 2013 Question 3(b) with Answers.

b) Under what circumstances is a business contract considered invalid in Islam? (7 marks)

Describe seven benefits of keeping records in business transactions according to Islamic teachings.

KCSE IRE Paper 2 2015 Question 3(a) with Answers.

(a) Describe seven benefits of keeping records in business transactions according to Islamic teachings. (7 marks)

Mention seven unlawful acts in trade.

KCSE IRE Paper 2 2017 Question 2(c) with Answers.

(c) Mention seven unlawful acts in trade. (7 marks)

State lawful acts in commercial trade

KCSE IRE Paper 2 2006 Question 2(b) with Answers.

State lawful acts in commercial trade. (7 marks)

Archives

Categories

​Explain FOUR kinds of sale in trade. (8 Marks)

Explain FOUR kinds of sale in trade. (8 Marks)

What are the Islamic teaching on matters of debt? (8marks)

Highlight the Islamic teachings on buying and selling? (8marks)

KCSE IRE Paper 2 2010 Question 3(c) with Answers and Marking Scheme.

(c) State four rules that a Muslim should observe before taking a loan from a bank. (4 marks)

KCSE IRE Paper 2 2010 Question 3(b) with Answers and Marking Scheme.

(b) Give six reasons why record keeping is important in business transactions.(6 marks)

KCSE IRE Paper 2 2011 Question 3(c) with Answers.

(c) State the conditions of borrowing and lending money in Islam. (5 marks)

KCSE IRE Paper 2 2013 Question 3(c) with Answers.

c) Describe five measures that can be taken to guard against hoarding. (5 marks)

KCSE IRE Paper 2 2013 Question 3(b) with Answers.

b) Under what circumstances is a business contract considered invalid in Islam? (7 marks)

KCSE IRE Paper 2 2015 Question 3(a) with Answers.

(a) Describe seven benefits of keeping records in business transactions according to Islamic teachings. (7 marks)

KCSE IRE Paper 2 2017 Question 2(c) with Answers.

(c) Mention seven unlawful acts in trade. (7 marks)

KCSE IRE Paper 2 2006 Question 2(b) with Answers.

​State lawful acts in commercial trade. (7 marks)

Archives

Categories

Explain FOUR kinds of sale in trade. (8 Marks)

State lawful acts in commercial trade. (7 marks)