Post Code : P.O BOX 3000 - 80100 MOMBASA
March 2025
2:0 minute
Exam code: 90081
1. Write your name and index number in the spaces provided above.
2. Sign and write the date of examination in the spaces provided above.
3. This paper consists of six questions
4. Answer any five questions
| 1 | 2 | 3 | 4 | 5 | 6 | Total |
|---|---|---|---|---|---|---|
Answer any five questions
(a) Highlight five characteristics of an efficient tax system. (10mks)
(b) Differentiate between a public limited company and a public corporation. (10mks)
(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) Explain clearly the problems associated with expenditure approach method in measurement of national incomes. (10mks)
(b) Outline five reasons why ethical practices is necessary in product promotion. (10mks)
(a) Jane,a petty cashier was given Sh ,2000 on 1st June 2005. During the month, she made the following payments:
2005 June
2 Stationery Sh 100, staff tea Sh 80.
5 Telephone bill Sh 50, postage stamps Sh 100.
8 Travelling Sh 200, telephone Sh 100.
10 Stationery Sh 50, staff tea Sh 100.
15 Postage stamps Sh 50, travelling Sh 100.
20 Sundry expenses Sh 100.
23 Stationery Sh 80, telephone Sh 40.
25 Travelling Sh 50, sundry expenses Sh 100.
28 Envelopes Sh 20, staff tea Sh 50.
30 Adhiambo, a creditor, was paid Sh 100.
(a) Use the following analysis columns to prepare a petty cash book:
Stationery, Staff tea, Travelling. Telephone, Sundry expenses. Ledger accounts. (12 mks)
(b) Explain five demerits that a country may suffer when the government becomes a major investor in business. (8 mks)
(a) Explain the role played by insurance industry in promoting the development of Kenyan economy. (10mks)
(b) Explain clearly the tools of monetary policy used by the central bank to control inflation. (10mks)
(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)