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 ownconsumption.

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

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.

7.

Draw a diagram to illustrate the effects of expansion in demand accompanied by a proportionate contraction in supply on equilibrium.

8.

Draw a diagram to illustrate the effects of expansion in demand accompanied by a proportionate contraction in supply on equilibrium.

9.

A new student has been convinced by a colleague to take Business Studies as a subject because he will be able to acquire skills and attitudes to benefit him in life. Highlight any four skills that he will acquire.

4 marks

10.

On 1st January 2014 Mr Ochumbo bought land worth Ksh. 800,000. He made payments as follows:- Kshs.300, 000 cash, Kshs. 200,000 by cheque, gave out posho mill worth Ksh. 250,000 and the balance to be paid later. Record the transaction in the relevant ledger accounts

19. Name the types of warehouses associated with each of the statements given below. Statement Type of warehouse i) Goods can be stored before payment of customs duty. ...................................................... ii) Individuals can hire storage facilities. ...................................................... iii) Goods are stored from several manufacturers. iv) Specialized goods are stored. 4 marks

20. . The balances given below relate to Wambululi Traders for the year ended 31st December 2013. Shs. Capital ? 2 year bank loan 230,000 Creditors 95,200 Fixed assets 480,000 Current assets 145,220 Prepare balance sheet as at 31st December 2013.