KCSE Past Papers 2020 Business Studies Paper 2 (565/2)

KCSE Past Papers 2020 Business Studies Paper 2

1.(a) Explain five measures that the government may take to solve youth unemployment in Kenya.(10 marks)

(b) Explain five reasons for consumer protection. (10 marks)

2.(a) Explain five principles of Government spending.(10 marks)

(b) Explain five trends in office management.(10 marks)

3.(a) Post the following transactions to the relevant ledger accounts and balance them off.

1/3/2018 – Started a business with Ksh 100,000 at the bank

2/3/2018 – Bought a motor vehicle worth Ksh 800,000 on credit from General Motors.

4/3/2018 – Withdrew Ksh 20,000 from bank for office use.

6/3/2018 – Bought stock worth Ksh 30,000 paying by cheque.

10/3/2018 – Made cash sales of Ksh 15,000.

10/3/2018 – Took cash Ksh 8,000 to pay hospital bills. (10 marks)

(b) Explain five benefits of intermediaries to the consumer in the chain of distribution.(10 marks)

4.(a) Explain five benefits of a savings account to a customer.(10 marks)

(b) Explain five ways in which a warehouse may promote trade.(10 marks)

5.(a) The following is an extract of a trial balance from the books of Adan Traders as at 31 December 2018


Adan Traders
Trial balance as at 31st December 2018
Premises 1,120,000
Debtors and creditors 55,000 37,300
Cash in hand 65,000
Cash at Bank 80,000
Discounts 15,000 2,400
Salaries and wages 27,000
Commission 16,600 9,000
Power and lighting 11,700
Furniture 49,000
Capital 1,301,800


(i) Prepare Adan Traders Profit and Loss Account for the period ended 31 December 2018 (5 marks)

(ii) Prepare a Balance Sheet as at 31 December 2018(5 marks)

(b) Explain five benefits of communication to a business.(10 marks)

6.(a) Explain five reasons that may make it necessary for the government to promote entrepreneurship. (10 marks)

(b) Explain five advantages of indirect production to the society.(10 marks)


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