(a) Discuss five benefits that a customer may get by using Automated Teller Machine (ATM) for financial transactions. (8 mks)
(b) The following trial balance related to Kimani’s business as at 31st December 2012
DR(SHS) CR(SHS)
Stock on 1st January 2003 60,000
Purchases and sales 400,000 580,000
Returns 20,000 50,000
Debtors and Creditors 65,000 40,000
Premises 540,000
Machinery 200,000
Fixtures and fittings 100,000
Carriage outwards 8,000
Wages and salaries 30,000
Discounts 25,000 32,000
Commissions 16,000 14,000
Cash in hand 70,000
Capital 818,000
1,534,000 1,534,000
REQUIRED:
Prepare a trading profit and loss account for the period ended 31st December 2012 and a balance sheet as at that date if the closing stock was worth shs 70,000 (12 mks)
(a) Explain clearly the malpractices by traders against which consumers may need protection by the government. (10mks)
(b) Explain clearly with the aid of a diagram the change in equilibrium as a result of a change in demand of a commodity. (10mks)
(a) Highlight five characteristics of an efficient tax system. (10mks)
(b) Differentiate between a public limited company and a public corporation. (10mks)
Identify four reasons why many youths in urban centre are starting hawking businesses. (4mks)
a)………………………………………………………………………………………….
b)………………………………………………………………………………………….
c)…………………………………………………………………………………………....
d)…………………………………………………………………………………………....
The statement below described various types of goods. Identify the type of goods best described by each statement. (4mks)
(a) Owned by the government on behalf of its citizens.
(b) Goods that are capable of directly satisfying human want.
(c) Goods that are used to make other goods.
(d) Goods that get spoilt within a very short time.
State four natural sources of energy in Kenya. (4mks)
a)……………………………………………………………………………………….
b)……………………………………………………………………………………….
c)……………………………………………………………………………………….
d)………………………………………………………………………………………..
Highlight four types of advertising. (4mks)
a)………………………………………………………………………………...
b)………………………………………………………………………………….
c)…………………………………………………………………………………….
d)……………………………………………………………………………………….
Indicate the subsidiary ledger in which each of the following should be recorded. ( 4mks)
Account Subsidiary ledger
(a) Return inwards
(b) Bank
(c) Drawings
(d) Juma traders ( a debtor)
(e) Discount received
(f) Uchumi wholesalers (a supplier)
Apex traders provided you with the following
Margin 25%
Cost of sales 15,000
Opening stock 2,000
Closing stock 1,000
Operating expenses 2% of capital
Sales and capital are in the ratio of 1:4
Calculate :
(a) Rate of stock turnover
(b) Purchases
(c) Return on capital
Outline four important characteristics of a general journal. (4mks)
a)…………………………………………………………………………………………..
b)………………………………………………………………………………………….
c)…………………………………………………………………………………………...
d)………………………………………………………………………………………….