s.5 Review Questions 2014

S.
5 2014 PCB
Gashora girls academy of science and technology
Lukenge Samuel Hannington Page 1

1. Define the term work?
b) with examples distinguish between
i) physical work and mental work
ii) professional work and non-professional work
c) discus the different perceptions people have towards work
d) discuss the reasons for and against work
2. Define the term career?
b) Discus the factors that influence someones choice of a given career.
c) Explain reasons to why some people may fail to achieve careers of their own choices.
3. a) Define career trajectory
b) Discus the steps taken while choosing a career.
4. Define career guidance
b) state any 10 sources of career guidance information.
c) Discus the role played by career guidance in schools.
d) under what circumstances will career guidance cause negative effects to the society
5. Distinguish between
i) employment and unemployment
ii) paid employment and self-employment
b) why would an individual prefer self-employment to paid employment.
c i)define income?
ii) State and define any five forms of income
d) explain the variations in incomes in relation to different careers.
6. Distinguish between
i) entrepreneurship education and entrepreneurship development.
ii) intra-preneurship and entrepreneurship
iii) entrepreneur and manager
b) of what importance is the knowledge acquired through studying entrepreneurship useful to
an individual and society at large.
c) Discus the different types of entrepreneurs in your locality.
d) discus the qualities of good entrepreneur in your society
7. Discus the functions of entrepreneurs in your country.
b) asses the role played by entrepreneurs in the development of your country
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c) examine the different challenges faced by entrepreneurs in your society
e) suggest possible solutions to the above problems in (c)
8. Define the term self-assessment as used in business.
b) State and define the different methods of conducting self-assessment by a business
man/woman.
c) Why is self-assessment important to a business man/woman?
9. Define business risks.
b) State and define the different forms of risks in business.
c) Discus the different ways the business owner can employ to minimize risks in business.
d) Distinguish between risk assessment and risk evaluation
e) describe the risk evaluation process in business.
10. a) Define the term creativity as used in the subject of entrepreneurship.
b) In which way an entrepreneur can be creative.
c) Mr. Miller (1999) states that we are all creative in many different ways, he summarized
seven general ways in which people are creative. People in organizations can channel their
creativity in different ways using Millers teaching show how an entrepreneur can be creative.
11. a) Describe the creative process that an entrepreneur can follow in order to bring about a
positive change in his/her business.
b) Examine the advantages of creativity as the most ingredient of a successful company.
c) Explain the factors that can hinder the implementation of creativity in the company.
d) Distinguish between creativity and innovativeness.
e) Is being creative in a business a waste of time?

12. Distinguish between business ideas and business opportunities
b) give the different qualities of good business ideas.
c) Describe the criteria for identifying good business ideas
d) explain at least ten sources of business ideas.

13. Define business goals?
b) Identify the different qualities of a good goal.
c) Discuss the importance of setting goals in business
d) Discus the factors that may hinder an entrepreneur to achieve his/her goals.
14. Distinguish between sole proprietorship business and partnership
b) discus the values attributed to working as an individual in business.
c) Why do some people prefer working as partners rather than operating as individuals in
business?
d) distinguish between
i) quasi partners and dormant partners
ii) real partners and major partners
iii) partnership deed and articles of association.
iv) Private and public limited companies
S.5 2014 PCB
v) memorandum of understanding and partnership deed
f) discus the contents of the partnership deed.

15. What is meant by joint stock companies?
b) State and define any three documents required while starting a business.
c) Discus the functions of joint stock companies.
d) What is meant by company limited
e) what are the different components of a memorandum of understanding in company
formation?
f) discus the advantages of a public limited company over a private limited company
16. Distinguish between cooperatives and business associations.
b) Identify the different principles of cooperatives.
c) Discus the role played by cooperatives in the development of business in your country.
d) Identify the problems faced by cooperatives Rwanda
e) site out any four examples of cooperatives business in Rwanda.
17. Distinguish between a
i) business organization and organization structure.
ii) Direct and functional organizational charts
b) identify the different factors that must be considered when designing an organization chart
of an enterprise.
c) State the different reasons for and against enterprises having organization charts.
18. Define management as used in business.
b) State and define the different managerial functions in an enterprise
c) identify the different importance of human resource managers in an enterprise.

19. a) What is meant my recruitment
b) discus the criteria followed while recruiting workers in an enterprise.
c) Discus the methods used in the recruitment process of workers by the entrepreneurs.
d)Discus the different ways which may be used by employers to get employees to work with.
e) Discus the different ways through which employers can motivate their employees. Using an
example of own choice draw an organizations chart (organogram)
g) Assuming that you are the general manager of BANK OF KIGALI (BK) design a job advert for
the post of a manager Bugesera branch.
h) design an application for the above mentioned job.
I) Kariranga a former student of Katosi senior secondary school and University of Kigali
from 2000 and 2005 respectively would like to apply for a job of human resource manager
having studied a masters degree in Business Management. He is aged 32 years and has
worked for 6 years in the same field from two different firms i.e Gashora cooperative union
and Mbyo coffee producers union 2006 and 2009 respectively.
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i) design karirangas curriculum vitae
ii) Write an application for kariranga
20. Define team building.
b) Discus the advantages enjoyed by the business as a result of operating as a team.
c) Identify the challenges that may occur to an enterprise which operate as a team while
conducting business activities.
d) Identify the factors which may hinder effective team building in an organization.

21. Define effective communication as used in business management.
b) Is communication important in business management? Yes/No support your answer with
relevant examples.
c) Discus the factor which hinder effective communication in an enterprise.
d) with an illustration discus the effective communication process

22. Define an office as used in office practice
a) Discus the importance of equipping entrepreneurs with knowledge of office practice in the
daily running of their business.
b) State and define the different types of offices in enterprise.
c) Discus the advantages of a cubical office layout over a private office layout in an enterprise
d) Identify different documents which may be found in an organized office.
e) Identify the different machines/equipment which can be found in an office.

23. What is meant by the term filing as used in office practice?
a) Define the different methods of filling in an office.
b) Discus the different filling systems used business organisations.
c) why is it important to keep documents in business
d) to what extent are the centralized system of filling important in relation to the decentralized
system

24. Define public relations?
b) Do companies need public relations officers? Yes/no support your answer.
c) what can be done by business to maintain its good relationship with its customers/clients
25. Define customer care?
b) Under what circumstances will customers stop consuming goods of a certain business
enterprise?
26. What is meant by the term business growth?
b) Discus the indicators of growth in a business.
c) Identify the different strategies that can be employed by the business to achieve growth.
S.5 2014 PCB
d) Discus the factors which may influence/affect business growth.
e) What may hinder a business from growing and how can these challenges be minimized in a
business.
f. Discus the role played by customer care to the development and prosperity of the business
enterprise.
g) Explain three roles of entrepreneur of entrepreneurship in employment creation
27. A) What is meant by the term financial management?
b) Why is the concept of financial management important in business management?
c) Discus the different components/elements of financial management.
28. A) What is meant by the term legal tender as used in business?
b) Discus the different reasons why the barter system of trade failed.
c) Distinguish between fiat money and hard currency.
29. A) Discus the different ways you will rate money in an economy.
b) Discus the role played by money in the development of an economy
c) explain then different functions of money in an economy.
30. What is meant by business capital?
b) Samuel made some savings from his previous job and he feels the money is not enough for
him to start a business yet he is not willing to borrow from his nearby microfinance, which
other alternative sources would you advise him to get resources from.
c) Given two alternatives as source of capital for the business:- owners equity and loans from
financial institution, which of the two will you opt for and why?
31. Gashora girls academy would wish to start a juice factory/plant, what could be the possible
costs they may incur.
32. Given the following information;
land 5000000
machinery 1000000
stock 4000000
cash at bank 70000
two year loan 30000
overdraft 10000
a) calculate
i) fixed capital
ii) current capital
iii) liquid capital
S.5 2014 PCB
iv) working capital
v) capital employed
33. Define financial systems?
b) Discus the objectives of financial systems?
34. With examples distinguish between banking and non- banking financial intermediaries in an
economy?
b) Discus the different ways how the central bank is a bank to the government in your country
c) Explains the different functions of the national bank of Rwanda.
d) Asses the role of the National bank of Rwanda (BNR) in the development of business in
Rwanda.
35. How does the central bank regulate economic activities in Rwanda?
b) discus the tools which are used by the central bank to control the amount of money in
circulation
c) discus the different way used by the central bank to control money in circulation
d) explain the different obstacles which may be faced by the central bank in implementing its
monetary policies
36. With examples define a commercial bank?
b) discus the functions of a commercial bank
c) Asses the role of commercial banks in the development of business in Rwanda
d) Explain the different challenges/problems/limitations/problems faced by commercial
banks in Rwanda
37. Discus the different ways through which commercial raise money to ran its activities.
b) State the different accounts that are operated by commercial banks in Rwanda.
c) State the different characteristics of each account.
38. A) Distinguish between an open Cheque and a crossed Cheque
b) discus the advantages and disadvantages of using Cheques in making business transactions.
c) Discus the circumstances under which a Cheque may be dishonored.
39. Discus the role played by capital markets in an economy
40. Distinguish between interest and interest rate?
b) State the different types of interest rates
c) why do financial institutions charge interest?
41. Tom has invested 5500,000 Rwf in Kenya Commercial Bank ( KCB) where he has a savings
account. He is to given an interest rate of 3.5% for a period of 7 years.
a ) calculate his simple interest
b ) how much will he receive in total.

S.5 2014 PCB
42. a)An amount of 1500 is deposited in the bank paying an annual interest rate of 4.3% and it
compounds every a quarter of the year. Find the balance / compound interest after 6 years.

b) Inyange Company has opened a savings account in KCB which have accumulated
10,000,000Rwf in five years. Its account is compounded on a half year basis at an interest
rate of 20%.
c) QN .Calculate the principle amount Inyange Company invested.

43. Distinguish between a break-even point and payback period.
b) Inyange group of companies has calculated that it has fixed costs that consist of lease,
depression of its assets, executive salaries and property taxes. Those fixed costs added up to
$60,000. The product is a widget. Its variable costs associated with the widget are raw
materials, factory labor and sales commission. Variable costs add up to $0.80 par unit. The
price of a widget is $2.00 each.
Calculate the Breakeven point for inyange Company.
a) in quantity
b) In value
c) In 2006 Mugisha made the following expenses on his company
Rent 500,000Rwf
Insurance 20,000 Rwf
Meals 25,000,000Rwf
The variable costs were calculated at 30,000,000Rwf.After all these expenses, the product
was a car which sold at 60,000,000Rwf
Questions.
a ) calculate the breakeven point
i) in quantity
ii) in value
iii) In time
b) Draw an illustration showing the Break-even point and clearly show the relationship
between Mugishas fixed cost, variable costs, total revenue and total cost on that
illustration

44. The initial expenditure of Okum business enterprise is 25,000,000Rwf which is expected to
generate a cash flow of 15,000,000Rwf in the next 10 years.
i) Calculate the payback period
ii) State whether the project is viable or not
iii) Give reasons for your answer in ( ii) above
45. study the table below and answer the questions that follow
Year Cash flow
0 ( 240,000 )
1 80,000
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2 120,000
3 70,000
4 40,000
5 21,000

a) Calculate the payback period (2 marks)
b)Giving reasons for your answer, State whether this project is viable or not(1m,ark)
c) State the decision rule of any business using the pay back method.(1mak)

46. Distinguish between accounting and book keeping
b) identify the different users of accounting information
c) why is it important to keep books of accounts in businesses

47. Define a business transaction
b) discus the importance of cash transactions over credit transaction
c) discus the importance of selling goods on credit

48. What are source documents as used in business
b) what is the importance of keeping documents in business
c) with examples illustrate the different source documents
49. Define a ledger
b) identify the different types of ledgers used in business

50. The following transactions where extracted from the books of Golola traders for the month
ending 31st feb 2014
1st feb started business with cash 60000rwf
2nd feb bought goods for cash 10000 rwf
5th feb sold goods by cheque 40000 rwf
7th feb paid rent in cash 15000 rwf
15th feb bought motor by cheque 20000 rwf
16th feb cash sales immediately bank 60000 rwf
18th bought more goods by cheque 20000 rwf
20th feb sold goods for cash 50000 rwf
23rd cash sales 30000 rwf
25th took cash for personal use 15000 rwf
25th paid for electricity by cheque 25000 rwf
26th bought furniture by cheque 30000 rwf
28th sold goods for cash 10000 rwf
30th paid salaries for cash 26000 rwf
Enter the above transactions in the books of Golola using double entry.
51. Define a journal?
b) Identify the uses of journals in business.
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Journal the following transactions, post then in ledger accounts and balance the account for
the month end.
2006 march 1
st
John commenced a business with cash 20,000Rwf and building 50,000. Rwf
March 2
nd
bought goods from Tom 2,000Rwf on credit
March 4
th
deposited cash into the bank 6,000Rwf
March 8
th
purchased office furniture 2,000Rwf
March 10
th
settled the account of Tom by cheque
March 12
th
sold goods on credit to Sam 4,000Rwf
March 14
th
received from Sam 4,000Rwf in full settlement of his account.
March 18
th
paid rent 5,000Rwf
March 20
th
took loan from Peter 10,000Rwf
March 24
th
sold goods to James 5,000Rwf
March 26
th
sold goods worth 8,000Rwf
March 27
th
withdrew for personal use 1,500Rwf
March 30
th
paid salaries 1,000Rwf

52. the following information was extracted from books of Jaribu enterprise for the month of April
,2010 .
1
st
balance b/f from march
Cash at hand 4,800,000
Cash at bank 6,500,000
Debtors
Agaba 1,200,000
Rhoda 2,800,000
Creditors
Annet 2,600,000
Ali 4,400,000
2
nd
Agaba cleared his account by cheque after reducing 2 1/2 % cash discount
8
th
Withdrew cash for business use worth 1,400,000
14
th
received cash from Rhoda in full settlement of her account less 2% cash discount
20
th
paid for wages worth 1,300,000
21
th
Issued a cheque to Annet in full settlement of her account less 3% cash discount
28
th
deposited cash into the bank worth 1,000,000
30
th
paid Ali by cash after deducting 21/2 cash discount .
a) show the journal entries and determine the capital as at April 2010 (5marks)
b) Write up a three column cash book and balance it .(5 marks)
c) Post the information to relevant ledger accounts and balance these accounts . (5 marks)

53. The following transactions were extracted from the books of BASASA enterprise limited for month of July
2003. RWF
1
st
Bought goods on credit from Santu 30,000,000
2
nd
Bought goods on credit from Tom 34,000,000
3
rd
Sold goods on credit to Ssali 43,000,000
5
th
Some of the goods were returned to Santu 3,000,000
8
th
credit sales to Mwangi were worth 5,200,000
10
th
Ssali returned some goods worth 23,000,000
11
th
Bought some goods from Musa on credit 63,000,000
14
th
Sold some goods on credit to Mukasa 36,000,000
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16
th
Credit purchases from Goba were 23,000,000
19
th
Some goods were returned to Tom 9,000,000
21
st
Mukasa returned goods worth 4,500,000
23
rd
Credit sales to Muta 32,000,000
25
th
Credit purchases from Dan 21,000,000
27
th
Returned some goods to Goba 2,500,000
28
th
Muta returned goods worth 1,900,000
29
th
Credit purchases from Sam 53,000,000
31
st
Returned goods to Sam worth 3,500,000
QN You are required to prepare BASASA enterprise limiteds ;
i) purchases day book
ii) Sales day book
iii) Return out ward book
iv) Return inward book
b) Post the above transactions in the ;
Purchases ledgers
Sales ledgers

54. The following are the transactions of Vicent curried out in the month of October 2008
1
st
credit purchases from William 150,000 at a 10% discount.
3
rd
credit purchases from Jimmy 200,000, Martin 35,000 ,Tony 15,000.
14
th
Goods returned to Jimmy 5,000,Tonny 4,000
18
th
received invoices from Jimmy 30,000 Martin 25,000.
21
st
Returned goods and received a credit note from William 3,000 Martin 2,500
28
th
Bought goods on credit from Jimmy 29,000.

You are required to
a) Prepare a purchases day book.
b) Prepare a purchases return outward book.
c) Post the items to their respective ledger counts.
d) Transfer the totals to the general ledger.

55. (i) Enter up the sales and return inward books of Ssali Joseph from the following details.
(ii)Post the items t the relevant accounts in the sales ledgers and general ledgers
2004 1
st
sent invoices to the following James 58000
invoice No.016,Kato invoice No.017, 67000
Peter invoice No.018, 25000
4
th
credit sales to Ivan invoice No.019, 75000
9
th
sent credits to James 5000,peter 2300
15
th
sent invoices to the following;Ivan invoice
No.22,2700 ,James invoice No.23, 21000
22
nd
Goods returned by Kato 75,000
25
th
sold goods on credit to peter atlist price of
100,000 less 10% trade discount invoice
No.24

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56. The following details relate to the books of Kalekyezi and sons limited for the month of May
2009
1
st
Received an invoice from peter numbered 02 30,000 Rwf
2
nd
Received an invoice from John numbered 05 34,000 Rwf
3
rd
Issued an invoice to Phillip numbered 01 43000 Rwf
5
th
Received a credit note from peter numbered 011 3000 Rwf
7
th
John issued a credit note for expired goods 012 23000 Rwf.
9
th
Issued an invoice to Micheal 02 23000 Rwf
10
th
Issued a credit note to Phillip 030 5200 Rwf.
11
th
Received an invoice from Okyani 042 63000 Rwf
15
th
Issued an invoice to Denis 03 36000 Rwf
16
th
Got a purchase invoice from joseph 055 4500 Rwf
18
th
Returned goods to John and received a credit note 066 36000 Rwf
20
th
Issued a credit note to Denis 025 4500 Rwf
23
rd
Gave out a sales invoice to Philip 043 32000 Rwf
25
th
Received a purchases invoice from okyani 07 20000 Rwf
27
th
Received a credit note from Joseph 059 13000 Rwf
30
th
Issued a credit note to denis 033 6000 Rwf
Required: prepare Kalekyezi and sons purchases Journal, sales Journal, Purchases return
Book, Returns in wards book, purchases ledgers and sales ledgers.

57. 2004 march
1
st
Kadongo Wilson commenced a business with capital of 2,800,000rwf out of which
1,500,000rwf were put on the bank account and 1,300,000rwf were kept in the office in cash
form.
2
nd
Bought shop fittings for 160,000rwf in cash
3
rd
Bought goods for cash 300,000rwf
5
th
sold goods and received a cheque for 400,000rwf
6
th
sold goods for cash 150,000rwf
10
th
Bought goods f0r 200,000rwf by cheque
15
th
cash sales 500,000rwf
17
th
paid carriage inwards 10,000rwf in cash
20
th
Received a bank loan of 500,000rwf by cheque
22
nd
Paid wages in cash 20,000rwf
23
rd
Paid electricity by cheque 150,000rwf
27
th
paid rent in cash 20,000rwf
Prepare a 2 column cash book and balance it dully.
Post the entries to their respective ledger accounts.

58. From the details given below, write up a double column cash book and balance at the end of
the month.
1
st
September 2004 balance brought forward last month was ;cash in hand 50,000rwf and
cash at bank 40,000rwf
1
st
put 45,000rwf for cash into bank
2
nd
bought goods for cash 1,000rwf
3
rd
bought a motor vehicle and paid by cheque 2,000rwf
6
th
bought goods for cash 2,000rwf
7
th
sold goods for cash 2,000rwf
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9
th
paid expenses 5,000rwf
14
th
sold goods and received a cheque for 3,500rwf
17
th
paid cash into bank 2,000rwf
19
th
bought goods for cash1,500rwf
23
rd
paid wages to an assistant in cash 1,000rwf
27
th
the proprietor took 700rwf out of the business for self-use
28
th
paid rent by cheque 4,000rwf
29
th
withdrew from the bank cash 1,500rwf
30
th
paid expenses 800rwf in cash.
59. The following information shows that transactions that were carried out by Lukenge traders
limited in month of May 2010
May 1
st
b/f 3,000,000 rwf at bank and cash balance b/f 600,000 rwf
3
rd
sold goods by cheque allowing a discount of 5% worth 200,000
6
th
purchased goods by cheque receiving 6% discount for cash 800,000
9
th
sold goods for cash allowing a discount 7% 300,000
11
th
paid rent for premises in cash 100,000
12
th
banked cash 400,000
13
th
paid transport by cheque 100,000
14
th
cash purchases 120,000
15
th
bought stationary paid by cheque 390,000
16
th
sold goods by cheque paid by cheque allowing 8% discount for 400,000
20
th
withdrew cash for business use 100,000
27
th
obtained a loan by cash from the bank 300,000
28
th
bought fixtures by cash 60,000
Required: a) prepare a 3-column cash book for Lukenge traders limited
b. open up the relevant ledger accounts and balance them off.

60. Enter the following transactions in the 3-column cash book in the names of kamasu traders for
the month of June 30, 2013
June 1
st
balalance b/f in cash 400,000 rwf bank 600,000 rwf
June 2
nd
the following people paid their accounts by cheque deducting 5% cash discount
Kaguta 100,000
Moses 150,000
5
th
paid wages in ccash 40,000
7
th
cash sales 100,000
10
th
we paid the following people by cheque less 10% cash discount
Kasule 150,000
Kaalo 80,000
Allan 90,000
13
th
received cash from john 130,000
15
th
cash drawings for personal use 70,000
17
th
banked cash 100,000
20
th
kaddu paid his account after deducting 2.5% cash discount 200,000
23
rd
bought fixtures by cheque 65,000
28
th
paid wages by cheque 60,000

61. A companys petty cashier is given an imprest of 1,200,000 Rwf for a period of two weeks. The
expenditure were as follows:
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March 2
nd
bought 2 reams of duplicating papers each at 60000
3
rd
paid transport to town 40000
4
th
bought accompaniments for staff 100000
5
th
bought 2 dozens of stencils each at 120000
6
th
paid for compound cleaners wages 60000
8
th
bought 10 brooms for compound cleaning each at 10000
10
th
paid for stamps and postage 50000
11
th
paid money for special hire taxi 12000
12
th
bought 3 dozen of Omo for cleaners each at 12000
15
th
bought ink for duplicating machine 150000
17
th
bought sodas for staff 120000
Required:
a) open up a petty cash book on imprest system with analysis columns for
stationary, travelling, and general expenses
Balance the petty cash book and make relevant entries in the general ledger.

62. James is a petty cashier who keeps the petty cash book on imprest system. He has a monthly
imprest of 200,000Rwf every beginning of the month. In January 2007 the following
transactions took place.
1
st
bought cleaning materials 40,000Rwf
2
nd
paid for cashiers transport 2,000Rwf
3
rd
paid for postal charges 13,800Rwf
4
th
bought stationery 4,600Rwf
10
th
paid computer cartridge 2,600Rwf
15
th
paid for water 2,000Rwf
19
th
paid molly 29,400Rwf
20
th
paid for New papers 1,600Rwf
21
st
pad watchmen's wages 62,600Rwf
25
th
bought cleaning materials 7,800Rwf

63. Enter the following transaction in a petty for the month of July 2007 and post the expenses to
the ledgers. Use analysis columns of traveling, advertising, cleaning, posting and sundry
expenses.
Jan the main cashier gave 10,000Rwf as a cash float to the petty cashier and the payments were
made as follows.
2
nd
traveling expense to Joy 1,000Rwf
3
rd
petrol 1,500Rwf
4
th
advertising expenses 700Rwf
5th
Cleaning expenses 200Rwf
6
th
envelopes and stamps 300Rwf
7
th
petrol 500Rwf
Toms traveling expenses 400Rwf
12
th
Johns traveling expenses 600Rwf
15
th
postage 200Rwf
20
th
settlement of George's account in the purchases ledger 1,000Rwf
25
th
cleaning expenses 300Rwf
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27
th
Alupos traveling expenses 500Rwf
28
th
advertising expenses 900Rwf
30
th
petrol 600Rwf
31
st
the cashier reimburses the petty cashier the amount spent in January.
64. The following items were extracted from MUTAMBAS trial balance for the year ending on 31
st
December
2007.
Details RWF
Opening stock 120,000
Closing stock 96,000
Sales 860,000
Purchases 26,000
Sales returns 3,600
Purchases return 2,000
Wages and salaries 4,000
Carriage on sales 600
Rent 5,000
Discount allowed 3,500
Discount received 1,500
Commission received 1,000
Carriage on purchases 500
You required preparing (a) prepare a trading account using a T- format income statement
using a vertical format.
65. The balance below relate to business of Miriam traders limited for the year ending 31
st

December 2013.
Sales 10,500,000rwf
Purchases 5,400,000
Drawings 1,250,000
Debtors 2,100,000
Creditors 1,420,000
Stock on 1
st
jan 3,500,000
Motor van 8,200,000
Equipment 1,945,000
Carriage inwards 340,000
Return inwards 235,000
Return outwards 140,000
Rate and rent 543,000
Carriage out 168,000
Telephone 1,810,000
Office expenses 920,000
Salaries and weges 1,460,000
Insurance 690,000
Postage 190,000
Motor expenses 200,000
S.5 2014 PCB
Sundry expenses 306,000
Electricity 400,000
Capital 17,567,000
Closing stock 3,230,000
Required: prepare a trial balance as at 31
st
December 2013
An income statement as at 31
st
December 2013

66. A manufacturing firm invested2,000,000Rwf in a new machinery. The equipment is expected
to increase a firms cash flow of 350,000Rwf per year. How long is the payback period?

67. Below is a list of assets, assets, liabilities and capital of Miss MUKASIINE as at 31st October
2004.
Capital 419,000
Land 300,000
3 years loan 13,000
10 years loan 100,000
Cash at hand 13,000
Cash at bank 15,000
4 years loan 60,000
Machinery 120,000
Office equipment 80,000
Furniture 70,000
Buildings 9,000
Bank overdrafts 35,000
Creditors 40,000
Debtors 40,000
Closing Stock 20,000
Prepare Miss MUKASIINES balance sheet at 31st October (5 mark)
Calculate the following
a) Capital net worth (1mark)
b) Working capital (1mark)
c) Working capital ratio (1mark)
d) stock turn (1mark)
e) Liquid capital (1mark)
f) Liquid capital ratio (1mark)
g) Average stock (1mark)
h) Fixed capital (1mark)
i) Capital employed (1mark)
j) Borrowed capital (1mark)

68. The following information was contained in the trial balance of MUGISHA a sole trader. Sales
1,300,000
Purchases 720,000
Stock 01-01-2000 120,000
Carriage on sales 30,000
Return in wards 100,000
Return out wards 15,000
S.5 2014 PCB
Discount allowed 8,000
Interest received 2,600
Capital 1231,000
Rent and rates 49600
Sundry debtors 18,000
Sundry creditors 35,000
Cash at hand 30,000
Salaries 156,000
Land 130,000
Furniture 62,000
Drawings 100,000
Wages 10,000
3 year loan 120,000
Motor van 1,170,000
Stock at 31st December was valued at 70,000rwf.
Q.N you required to prepare a profit and loss account for the year ending on 31st December
2000 (10 marks)
Prepare a balance sheet for Mugisha traders as at 31
st
December 2000 (5marks)

69. Discus the role played by business laws in Rwanda

70. Define a business contract
b) discus the different types of contracts used in your country
c) explain the terms and conditions used in business contracts
e) under what circumstances my business contract be terminated
f) what is meant by breaching a contract
g) what causes bleaching a contact in business
h) under what circumstances may a contract be terminated

71. What is meant by the term business disputes
b) describe the circumstances that cause business disputes
c) discus the different ways that may be adopted to resolve business disputes.

72. Distinguish between technological development and technological transfer
b) why would you prefer intermediate technology to appropriate technology.
c) What are the advantages of labour intensive technique of production over capital intensive
technique of production
d) discus role that has been played by ICT in development of business in Rwanda
e) explain the problems that have hindered technological development in Rwanda.

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