Bunyore Maranda MOCKS 2016 Business Studies Paper 2

1. Explain any five features of a good filing system. (10 marks)
2. Explain five reasons why citizens may experience low standards of living despite improvement in the per capita income. (10 marks)
1. Outline five differences between ordinary shares and debentures. (10 marks)
2. The following trial balance was extracted from the books of Okumu traders as at 31/12/2012.
  
  Required:
  1. Prepare Okumu traders trading, profit and loss account for the period ended 31/12/2012
  2. Balance sheet as at 31/12/2012 (10 marks)
1. Explain five advantages accruing to a country that has joined an economic block. (10 marks)
2. Explain negavite effects of any five macro environmental factors of a business. (10 marks)

Record the following transactions in the relevant ledger accounts, balance the account and extract a trial balance. (12 marks)

Date	Transaction
1/4/2012	Mary started business with shs. 80,000 cash
2/4/2012	Bought stationery for shs 4,000 and paid in cash
3/4/2012	Opened a bank account and deposited shs 50,000 from the cash till.
4/4/2012	Bought motor vehicle worth shs. 250,000 from Lucy motors on credit.
5/4/2012	Bought postage stamps for shs. 60 in cash

1. Discuss five ways of improving the efficiency of a warehouse. (10 marks)
2. Highlight five methods that can be used to determine the size of the firm. (10 marks)
1. Explain five monetary policies that the Kenyan government uses to control the supply of money in an economy. (10 marks)
2. Explain five principles of insurance. (10 marks)