MZALENDO TRADERS TRIAL BALANCE AS AT 3151' DECEMER 2012 Opening stock Purchases Sales Return outward Return inward Carriage on goods
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Question

1.a) Explain Five ways in which the government of Kenya can encourage entrepreneurial development. (10mks)

b) Explain Five benefits that a trader would get by advertising his products through radio. (10mks)


20 marks

2.


a) Discuss Five effects of eliminating the wholesaler from the chain of Distribution. (10mks)


b) Explain FIVE function of a commercial attaches. (10mks)


20 marks

3.


a) Explain FIVE ways that the government can use to raise funds to finance its programme. (10mks)


b) On November 2012 Solo traders had cash in Hand sh.87,000 and cast at Bank sh 250,000.


During the month, the following transactions took place .


Nov 2: Cash sales sh 50,000


3: Paid salaries and wages sh 101,500


6: Received a cheque for sh 76,800 from Wambui after allowing her discount of 4%.


12: Bought office furniture by cheque sh 85,000.


13: Paid Wanga by cash sh 45,000 having received a discount of 10%.


14: Received cash from the following account Bahati sh 72,000, Wambui sh.180000, Nafula sh 135,000 each had been allowed 10% cash discount. 16: Bought stationery shs. 15,000 in cash.


17: Received a cheque of sh 241,000 from Odongo having allowed him discount of 3%.


23: Deposited all the money into the bank having a balance of sh 100,000.


Required:


Prepare three column cash book dully balanced. (10mks)


20 marks

4.


a) Explain FIVE ways in which a government can practice trade Restriction. (10mks)


b) Explain circumstances under which each of the following means of payment can be used. (10mks)


i) Standing order


ii) Credit cards


iii) Credit transfers


iv) Crossed cheque


v) Postal orders


20 marks

5.


a) Outline Five distinctive features between public Limited Company and partnership form of business. (10mks)


b) Recently after the election the demand for bread has drastically change negatively. Explain five possible causes of these Scenarios. (10mks)


20 marks

6.


a) Explain five ways in which Production activities may adversely affects the community.


b) The following Trial Balance was extracted from the books of Mzalendo Traders as at 31st December 2012


Screenshot_20210108-121429.png

Additional information


Stock on 31st December 2012 was sh 408,000


Carriage outwards sh.40, 000


Building was to be depreciated by 10% per annum


Prepare


Trading, profit and loss on 31st December 2012. (10mks)

Identify four classes of business activities that one may engage in. (4mks)



1.


a) Explain five benefits that would accrue to a businessman who uses a Liner rather than Tramps Steamers (10mks)


b) Using a diagram, describe the effects of outward shift in supply curve on equilibrium price and quantity. (10mks)


20 marks

2.


a) Explain four measures that may be taken by the government to promote her export. (8mks)


b) The following Trial Balance was extracted from the books of Kisumu Auto spares as at 31stOct

Screenshot_20210108-122004.png

Required,


(i) Prepare Trading ,Profit and Loss account for the year ended 31stOct 2011


(ii) Prepare Balance sheet as at 31stOctober 2011 (12mks)


20 marks

3.


a) Explain Five circumstances under which a manufacturer would find it advisable to distribute his goods through wholesalers. (10mks)


b) Explain five functions of the central bank of Kenya in the Economy. (10mks)


20 marks

4.


a) Distinguish between shares and debenture as a source of finance. (10mks)

b) Outline five circumstances under which a firm will be located near the market for its products. (10mks)


20 marks

5.


a) The following information relates to Bizna Distributor Company for the year ended 31stDec 2009

Screenshot_20210108-122045.png



Required calculate


i) Margin (2 ½ mks)


ii) Rate of stock turnover (2 ½ mks)


iii) Return on capital employed (2 ½ mks)


iv) Current ratio (2 ½ mks)


b) Explain five ways in which the Entrepreneur contributes to the production of goods. (10mks)


20 marks

6.


a) Describe five means of payment that a trader may use to settle business debts. (10mks)


b) Explain five indicators of under development in Kenya. (10mks)




1.


Highlight five reasons why the government trains business people. (10 mks)

b) Explain five roles that intermediaries play in the distribution of goods and services. (10 mks)


20 marks

2.


a) Discuss six reasons why many Kenyans are increasingly shopping in supermarkets. (12 mks)


b) The Kenyan government has plans to construct a major seaport at Lamu. Explain four benefits that may accrue to the country from this new port at Lamu. (8 mks)


20 marks

3.


a) Explain five advantages of a public limited company as a form of business. (10 mks)


b) The following balances relate to Msafiri Traders as at 31st December, 2012:


Screenshot_20210108-122221.png



4.


a) Explain five principles that guide the tax system in a country. (10 mks)


b) Labour is one of the basic factors of production. Outline five measures that a business can take to increase the productivity of its labour force. (10 mks)


20 marks

5.


a) Describe five ways in which the price of a product can be determined in a market. (10 mks)

b) Explain five benefits of mobile phone money transfer services. (10 mks)


Screenshot_20210108-122257.png


b) Outline five differences between oligopoly market and perfect competition market situations. (10 mks)



1. What are the factors that have contributed to the growth of entrepreneurship .


2. Outline four reasons for establishment of a business enterprise


3. Enter the following transactions in the ledger accounts of Onyango Traders for the month of

May, 2004

May 1: Started business with shs.150,000 cash

2: Bought goods on credit from Kamau for shs.40,000

4: Sold goods for cash shs.34,500

5: Returned some of the goods purchased from Kamau for Kshs.4,500


4. State four reasons to consider when evaluating a viable business opportunity


5 A surgeon set up a clinic in a distant rural centre. The business was closed after six months.

Identify four possible causes for the failure


6. State four reasons why the government of Kenya is encouraging entrepreneurial knowledge in

schools

Q. Identify four benefits of entrepreneurship to the developing economies such as Kenya

Image transcriptions

MZALENDO TRADERS TRIAL BALANCE AS AT 3151' DECEMER 2012 Opening stock Purchases Sales Return outward Return inward Carriage on goods

Kisumu Auto Spares Trial Balance As at 31st Oct 2011 DR CR Capital 653,560 Motor vehicle 603,000 Equipment 200,600 Furniture 94,400 Debtors 75,900 Creditors 74,300 Carriage on sales 14,400 Discount Received 26,400 Salaries 12,400 Rent Income 12,600 Sales 319,400 Purchases 300,000 Advertising 22,200 Rates 9.400 Stock 1-11-2010 61,500 Bank 412,600 Cash 105,060 TOTAL 1.498.860 1,498,860 Stock on 31 October 2011 was sh. 80,200 Required, (i) Prepare Trading , Profit and Loss account for the year ended 31stOct 2011 (ii) Prepare Balance sheet as at 31stOctober 2011 (12mks)

5. a) The following information relates to Bizna Distributor Company for the year ended 31 StDec 2009 abs Gross profit 600,000 Opening stock 285,000 Sales 2,400,000 Purchases 1,830,000 Expenses 360,000 Closing stock 315,000 Fixed assets 400,000 Debtors 900,000 Bank 35,000 Current liabilities 438,000

shs Purchases 900,000 Stock, 1/1/2012 230,000 Buildings 1,200,000 Motor vehicles 750,000 Returns outwards 50,000 Debtors 190,000 Creditors 310,000 Loan from IDB 600,000 Cash at hand 130,000 Cash at bank 270,000 Drawings 100,000 Capital 1,840,000 Net profit 170,000 Stock, 31/12/2012 280,000 Expenses (including carriage inwards, shs, 150,000) 250,000 REQUIRED: i) Balance sheet as at 31st December, 2011. (6 mks) ii) Calculate: - Mark-up percentage. (2 mks) - Return on capital employed. (2 mks)

6. a) On 1st June 2011, Nyati Traders had cash in hand of sh25,000 and sh56,200 at bank. During the month, the following transactions took place: 2011 June 2 Cash sales, sh42,000. June 5 Received a cheque of sh70,500 from Butala Traders after deducting a 6% cash discount. June 8 Paid salaries, sh24,000 in cash. June 9 Kivuitu settled his account of sh45,000 in cash and was allowed shl,800 cash discount. June 12 Cashsales sh46,500. June 18 Paid Tuiei's debt of sh 100,000 by cheque after deducting 5% cash discount. June 24 Withdrew sh26,000 from the bank for office use. June 30 Banked all the cash except sh25,900 Prepare a 3-column cashbook and balance it off on 30th June, 2011. (10 mks)

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