19. From the transactions given below name the account to be debited (Dr.) and the account to be credited (CR) (4 mks) TRANSACTION DEBIT (DR) CREDITED (CR) i) Deposited shs. 2000 into the bank from the cash box ii) Sold goods on credit worth shs 5,000 iii) Purchased goods in cash worth shs 4,000 iv) Withdrew goods worth shs 2,500 for own consumption. 20. The following balances were extracted from the books of Rioba Agencies for the period ended 30th June 2013. shs Stock (1/7/12) 14,700 Sales 86,400 Purchases 65,000 Returns outwards 4,700 Carriage inwards 2,200 Commission received 8,100 Salaries 2,500 Stock on 30th June 2013 20,000 Required: Prepare the trading account for Rioba Agencies for the year ended 30th June 2013. (4 mks) 21. Outline four current trends in the road transport in Kenya today. (4 mks) 22. State four structural changes that may take place when a country is experiencing economic development. (4 mks) 23. Highlight four features of a bounded warehouse. (4 mks) 24. State four negative implications of production activities on the community. (4 mks) 25. The following cash transactions took place in he business of Ochieng during the first week of June 2013. 2013 June 2013 June 1. Balance brought down was cash shs 20,000, bank shs 45,000 2013 June 2. Sold goods worth shs 10,000 by cash 2013 June 3. Sold a piece of furniture for shs 8,000 and the amount was directly paid to the bank. 2013 June 4. Bought goods worth shs 16,000 paying partly by cheque worth shs 9,000 and the balance was paid in cash. 2013 June 5. Banked all the cash except shs 5,000 Required Prepare two column cash book.

1. a) Explain five measures the government may take to curb cost-push inflation. (10 mks) b) Explain five principles under which co-operative societies should be managed. (10 mks) 2. a) Explain five advantages of a declining population. (10 mks) b) The following information was obtained from the books of Nyota Njema Traders Invoices Received Jan 2,2015 Shari Traders for sh. 80,000 invoice No. 41 Jan 18,2015 Chacha traders for sh. 120,000 invoice no. 72. Jan 25,2015 Nala traders for sh. 200,000 invoice no 31 Invoices issued Jan 5,2015 Song traders for sh. 50,000 invoice no.1 Jan 6,2015 Mali traders for sh. 6,800 invoice no. 2 Jan 10,2015 Mamba traders for sh. 22,000 invoice no. 3 Credit Notes received Jan 10,2015 Shari traders sh. 4,000 Credit Note number 16 Jan 28,2015 Malo traders for sh. 3,500 Credit Note no. 23 Credit notes issued Jan 8,2015 Song traders for sh. 3,000 credit note No. 1 Jan 26,2015 Mali traders for sh. 7,200 credit note no. 2 Required: Journalize the information above in the relevant subsidiary books (10 mks) 3. a) Explain five disadvantages of long chain of distribution of goods to a buyer. (10 mks) b) Explain five qualities of an office messenger. (10 mks) 4. a) Explain five measures taken by the central bank of Kenya (CBK) to control credit. (10 mks) b) Discuss five economic importance of natural resources. (10 mks) 5. a) Explain five benefits of economic integration to member states. (10 mks) b) Despite the advantages of railway transport. It has not been competitive as other means of transport in Kenya. Explain five reasons that have hindered its competitiveness. (10 mks) 6. a) The following transactions relate to Leo traders for the Month of Feb 2015 Feb 1 started a business with sh. 180,000 in bank 6 Bought goods on credit from Mato sh. 80,000 and King sh. 50,000 10 Sold goods for credit to Edna sh. 141,500 12 Paid Mato sh. 25,000 and King sh. 31,000 by cheque 15 Recieved a cheque worth sh. 24,000 from Edna 28 Returned goods to Mato sh. 1,000 28 Withdrew sh. 5,000 from bank for personal use. Required: Enter the transaction above in the relevant ledger accounts and balance them off. (13 mks) b) Outline Seven benefits of pooling of risks.

1. Outline four reasons why one may want to start a business (4mks) 2. The following are human wants that people have. Indicate whether each is a basic want, comfort or a luxury . (a) Entertainment (b) Bread for street boy (c) University education (d) A Gold watch (4mks) 3. Office equipment include all necessary office machines and furniture. Explain four roles played by equipment in an office (4mks) 4. State four advantages of pipeline transport (4mks) 5. State four challenges that may be faced by a consumer who buys goods from intermediaries (4mks ) 6. Outline four characterisitcs of monopoly 7. The following information relates to Karima Kogi stores for the year ending 31st Dec 2014 Sh Stock 50,000 Cash at Bank 15,000 Machinery 240,000 Creditors 75,000 Debtors 55,000 Required: Draw Karima Kogi stores Balance Sheet as at 31st December 2014 (3mks) 8. Classify the following account as real, nominal or personal (a) Purchases (b) Stock (c) XYZ Company Ltd 9. Outline four factors that determine the location of a firm (4mks) 10. Mention four features of capital as a factor of production (4mks) 11. Give four reasons which make buyers to shy off from buying goods through hire purchase (4mks) 12. Identify any four goals of Economic Development (4mks) 13. List down four errors that are not revealed by a trial balance (4mks) 14. Outline four factors that might cause demand pull inflation (4mks) 15. Wanjiku operates a business on her own. State four disadvantages she is likely to suffer for operating the business on her own (4mks) 16. State four factors that a business person will consider when determining the mose viable business opportunity (4mks) 17. Record the following transactions in a 2 - column cash book of Waigwa Traders and balance it off (5mks) 2012 Jan 1 Balance b/d Cash Sh. 10000 Bank Sh .25000 Jan 2 Bought stock in cash Sh. 6000 Jan 7 Cash sales Sh. 2500 Jan 12 Withdrew cash from bank for office use Sh. 4000 Jan 15 Paid wages in cash Sh. 3000 Jan 21 Received sh 4500 from Karanja by cheque

3. a) Explain five remote external factors that influence business operations. (10 marks) b) Expalin five reasons why government may impose trade restrictions. (10 marks) 4. a) Record the following information relating to the traders in the relevant books of original entry for the month of June 2013 and post them to the relevant ledger Accounts. (10 marks) June 2: Credit sales to Wako retailers worth sh 8,000 issued invoice No. 0111. June 5: Credit purchases from Jamu suppliers worth sh 30,000 received invoice No. 20 June 8: Credit sales to Mwenda worth sh 12,000 issued invoice No.12 June 16: Credit purchases from Sam Traders and Mwiti traders worth sh 5,300 and sh 6,200 and issued with an invoice No.13 and 14 respectively. June 18: Credit sales Wako retailers and Mwiti traders worth sh 5,300 and 6,200 and issued with an invoice No. 13 and 14 respectively. June 24: Credit purchases from Sam and Wangu traders sh 1000 and 2,800, invoice No.451 and 722 respectively. b) In the last few months, the supply of mangoes in Chuka Town was on increase. Explain any five factors that may have attributed to this. (10 marks) 5. a) Most of the African countries are suffering from rapid unemployment rates. Explain five causes of this situation. b) Public finance refers to activities carried out by the government in raising and spending of finances. Explain five purposes of public finance. 6. a) Outline five advantages of pipeline transport over the road transport. (10 marks) b) The following transaction took place in the business of JohanaMakembo in the month of May 2013. 2013 May 1: started business with sh 100,000 in bank and sh 20,000 in cash May 3: Purchased goods values at sh 24,000 from Kanyua on credit May 6: Paid rent sh 1200 by cheques. May 10: Purchased a delivery van valued at sh 720,000 from Mwema Motors and paid by cheques. May 12: Sold goods in cash sh 45,000. May 15: Paid Kanyuash 10,000 by cheques. Required: Use the above information to: Prepare the relevant ledger accounts and balance them off as at 15th May 2013 (7 marks) Extract a trial balance