1. (a) Explain five measures put in place by the government to bring order in road transport sector in Kenya today.

(10 marks)

(b) Explain five reasons why per capita income is not a good indicator of standards of living.

(10 marks)

2. (a) On 1st November 2013:Tabagon Co. Ltd. had a balance of shs. 12,000 at the bank and shs. 2500 in

hand. During the month, the following transaction took place;

Nov. 1

Cash sales Shs. 2500, cash purchase Shs. 1750

Nov. 3

Paid the following accounts by cheque.

KiropShs. 1500 less 5% cash discount

KiruiShs. 2000 less 5% cash discount

Nasimiyushs. 2100 less 3 % cash discount

Nov. 5

Received the following amounts from debtors,

Ondiekshs.1200, Jane shs.3850 and Mueni by chequeshs.2050 after allowing her shs. 300 cash discount.

Nov. 14Paid office cash to the bank shs. 2000

Nov. 17 Cash sales 8500

Nov. 22 Mueni paid her account of shs. 5000 by cheque less 10% cash discount

Nov. 28 Withdrew all the money from the bank for office use except shs. 1000

Nov. 29 Paid salary cash shs. 8000

Nov. 30 A cheque received from Mueni on Nov. 5th was dishonoured.

Prepare Tabagon Co. Ltd. three column cash book.

(10 marks)

(b) Describe the procedure of obtaining an insurance claim.

(10 marks)

3. (a) Explain the meaning of the following terms as used in business ownership.

(10 marks)

(i) Franchising

(ii) Merger

(iii)Holding company

(iv) Front Office Savings Account (FOSA)

(v) Globalization

(b) Explain five features of a hypermarket.

(10 marks)

4. (a) Explain five emerging issues in office practice today.

(10 marks)

(b) Explain five reasons that account for the existence of small firms in an economy.

(10 marks)

5. (a) Explain five ways in which communication enhances trading activities.

(10 marks)

(b) Highlight five factors that facilitate entrepreneurial development in an economy.

(10 marks)

6. (a) The following trial balance was extracted from the ledgers of Gathioro's mobile phones business for the yearended 31st Oct 2013.

565/1 &565/2 business studies Gathioro's mobile phones Trial Balance As at Gathiro's 31 t Oct 2013 Details Dr.(Shs) Cr.(Shs) Sales 855,000 Purchase 420000 Sales returns 12000 Purchase returns 20000 Creditors 165000 Debtors 63000 Motor vehicle 480000 Cash in hand 65000 Furniture 190000 Carriage inwards 14000 Stock 280000 Capital 626250 Drawing 88000 Telephone 6400 Insurance 8200 Postage 3850 Rent 19600 Discounts received 4000 Advertising 12900 Discount allowed 7300 1670250 1670250 On 31st Oct. 2013, the business had closing stock valued at Shs. 60,000 Required (i) The trading, profit and loss a/c for the year ended 31$t Oct 2013. 8 marks) (ii) A balance sheet as at that date. (4 marks) (b) Explain five services rendered by the Central Bank to the government. (10 marks)