2019 mokasa business studies paper 2
- Explain five ways in which division of labour is useful to a firm.
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Explain four insurance policies you would advise a hospital chief executive officer toinsure against.
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a) Give five differences between perfect competition and monopoly market structures.(10 marks)
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b) Explain five guidelines county governments need to follow before spending publicfunds. (10mks)
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- Bank 15,000(Cr)
- Cash 25,000(Dr)The following transactions took place in the business of Mokaya enterprise in the month of July 2017July 1: Started business with sh. 150,000 in bank and ksh, 30,000 in cashJuly 3: Purchased goods valued at sh. 34,000 from Kioko on creditJuly 8: Paid rent sh. 13,000 by chequeJuly 10: Purchased office equipment valued at Ksh. 45,000 from Daima stores and paid by cheque.July 12: Sold goods in cash Ksh. 15,000July 15: Paid Chemtai Ksh. 24,000 by cheque
Required: Use the above information to;
(i) Prepare the relevant ledger accounts and balance them off as at 15th July 2017
(6 marks)
(ii) Extract a trial balance (4 marks)
- a) Explain five benefits that may be realized by a country as a result of government policy to relocate industries to rural areas. (10 marks)
- b) On 1st of April 2018, Machofi Traders had the following balances:
The following transactions took place during the month of April 2018.
April:
3rd: Paid wages in cash sh. 15,000
5th: Bought goods worth sh. 750
6th: Received cheques from the following debtors after allowing a 2% discount in each case. Rioki sh. 980, Kombo sh. 1,960
8th: Chebe paid a cheque for sh. 1,000
11th: Bought machinery by cheque for sh. 5,000
13th: Cash sales paid directly to the Bank sh. 4,000
15th: Withdrew cash sh. 1,000 for private use
20th: Cash sales sh. 20,000
21st: Banked cash amount sh. 1,000
24th: A cheque recorded from Chebe on 8th of April was dishonoured
27th: Received sh. 3,000 from Kiko a debtor
30th: Bank all the available cash except sh. 1,000
Prepare Machofi Traders Three column cash book for the month of April, 2018
(10 marks)