CEKENAS END OF TERM TWO EXAM-2022

Kenya Certificate of Secondary Education. (K.C.S.E)

MARKING SCHEME
BUSINESS PP2
565/2
1i.) Output per worker is greatly increased thus increased productivity

ii.) Encourages invention and innovation thus reducing the cost of production

iii.) High quality goods and services are produced thus attracted more demand

iv.) It saves on time thus maximizing on available labour

v.) Production is faster and efficient thus enable continuous supply and meet unexpected demand

b.)i.) Workman’s compensation policy as it covers workers who may be injure in the course of their duties

ii.) Cash on transit policy to cover any loss of cash enroute the bank

iii.) Fidelity / guarantee policy so as to cover any loss caused by dishonesty of workers

iv.) Fire policy which covers the losses caused by incidences of fire

v.) Sprinkle leakage policy to cover against leakage of fires fighting sprinkles affixed in the premium

vii.) Goods on transit policy to cover goods being transported to/from the premium

viii) Windows/ glass policy – to0 cover damage to the windows and glass to the premises

2.a.)i.) Saction –Must get necessary approval from relevant authorities

ii.) Maximum social benefit- The benefit of expenditure should spread to a considerable number of
residence

iii.) Flexibility –should be need driven /Change according to prevailing situation in the country/county

iv.) Economy – Implement should ensure more money is allocated to tangible projects through in policy
formulation and procedures

v.) Proper financial management -Implementers should have sound management policies to ensure no
wastage of funds

2bi.) The decision of what goods and services to include

CEKENA 2022 FORM 4 1 BUSINESS STUDIES 565/2 MS

ii.) Difficult to value goods not sold in the market

iii.) Income generating activities that are considered illegal are not included

iv.) Difficult to value goods kept as stocks especially in the private sector

v.) Difficult to measure the cost of wear and tear

vi) Difficult to differentiate the primary and intermediate output

vii.) Difficult to value government output since they are not sold is the market

3.ai) Help the society to appreciate the role of business in the provision of goods and services

ii.) The community will understand the role of the government in business

iii.) The community will have positive attitude towards work

iv.) Equips the members of the community with skills to start and run a business

v.) Make the society appreciate the need for good business management practice

vi.) Equips the society with knowledge of role of business in the society

vii.) Assort members of the society to relate knowledge skill and attitude acquired to the day to day
running of the business

KATIBA TRADERS

TRADING PROFIT & LOSS ACCOUNTS

FOR THE YEAR ENDED 31ST DEC 2012

Opening stock 35000 Sales 120,000

Add purchase 60,000 Less sales return 18500
Add carriage inward 27900 Net sales 10,500
Less return out 4500
Costs of goods available for sale 118,400
Less closing stock 26400
Cost of goods sold 91900
Gross profit c/d 9600

Expense Gross profit b/d 9600

Carriage outwards 29400 Add revenue
Salaries 14400 Rent income 100,000
Bad debt write off 2000 Discount received 6800
Rates 36900
Discount allowed 6900
Electricity 25000
Net profit c/d 88200

114600 114600
Net profit b/d 88200

CEKENA 2022 FORM 4 2 BUSINESS STUDIES 565/2 MS

4.a.i) Speedy delivery of goods – Foster / timely distribution

ii.) Large bulky goods – carry more good at once / reduce cost

iii.) Lower the cost of transport – producers pay them

iv.) Reduces damage on congestion – Reduces traffic jam and accidents

v.) Reduces damage on roads –Most trucks will be so replaced by train

vi.) Comfortable commuter service – Passengers can be moved conveniently

vii.) Reduces pollution –Environmentally friendly

4 b.)i.) Widening market due to increase demand

ii.) Better utilization of resources as the people compete for the scarcely available resources

iii.) Creates a pool of labor supply thus creates availability and lower cost of labour

iv.) Enhances creativity as people scramble for the limited opportunities / resources

v.) Promotes labour mobility as people seek greener pasture

vi.) Stimulates investments due to limited employment opportunities/ reduce poverty levels

Sales Journal

Date Particular Invoice no. L.f Amount

March1 Ochupe 200,000
March1 Njeri 180,000
March5 Mwangi 320,000
March5 Abdalla 175000
March5 Ochupe 135000
March 29 Njeri 220000
March29 Njau 150,000

Sales Requires Journal

Date particular Credit note no. L.f Amount

March 8 Ochupe 2800
March 8 Njeri 3100
March 30 Njau 2300

Particular Journal

CEKENA 2022 FORM 4 3 BUSINESS STUDIES 565/2 MS

Date particular Credit note no. L.f Amount
2/3 Chebet 150,000
2/3 Wambua 700,000
2/3 Alfred 18,500

Cash payment Journal

Date particular receipt no. Discount received Cash Bank

2/3 Advertisement
27/3 exp 4,800
Expenses 35000 665,000
wambui

Cash payment Journal

Date particular receipt no. Discount allowed Cash Bank

28/3 Rent 5200

Purchase

Date particular Credit note no. L.f Amount

26/3 Chebet 30,000
12/3 Alfred 25000

5.b.) i.) Saves time

ii.) Withdrawal can be done any time
iii.) They are conveniently placed
iv.) Have access to account balance
v.) Can pay utility bills
vi.) Cheap to operate
vii.) Safer to use
viii) Can deposit money in bank account
ix) Can withdraw money from the bank

CEKENA 2022 FORM 4 4 BUSINESS STUDIES 565/2 MS

6a.)

A decrease in cost of production will increase the quantity supplied resulting to

i.) A forward shift of the SS curve

ii.) Increase equilibrium quality

iii.) Reduced equilibrium price

iv.) A forward shift of the equilibrium point

b.i.) Franchising – Where a business permits another the right to manufacture, distribute its products using
the name of the firm that gives the right at a fee

ii.) Amalgamation / mergers- Two or more business combine to form one new business

iii.) Holding companies - A company that requires 51% or more ownership or more companies which will
be subsidence’s and her control but separate identities

iv.) Check of system – Money is deducted at the source by the employees and submitted to the SACCO

v.) Burial benevolent fund - A system by SACCOs to assist members financially for burials

vi.) FOSA – Account provided by the SACCO to their members to enable deposit or withdraw money
currently

vii.) Globalization – Businesses conduct their full all over the world through technology such as e-
commerce

vii.) Cartels – A group of wild companies that has agreed work together in order to control output market
and price of their goods and services
CEKENA 2022 FORM 4 5 BUSINESS STUDIES 565/2 MS