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UACE PAPER TWO 2024

The document is an examination paper for Entrepreneurship Education, requiring students to answer four out of six questions related to business operations, financial management, and human resources. Each question includes multiple parts, focusing on practical applications such as creating policies, budgets, and plans for various business scenarios. The paper assesses students' understanding of entrepreneurship principles and their ability to apply them in real-world situations.

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NABAYA KENNEDY
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1K views

UACE PAPER TWO 2024

The document is an examination paper for Entrepreneurship Education, requiring students to answer four out of six questions related to business operations, financial management, and human resources. Each question includes multiple parts, focusing on practical applications such as creating policies, budgets, and plans for various business scenarios. The paper assesses students' understanding of entrepreneurship principles and their ability to apply them in real-world situations.

Uploaded by

NABAYA KENNEDY
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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UACE

ENTREPRENEURSHIP EDUCATION
PAPER 2
P230/2
3 HOURS

INSTRUCTIONS;
1. Answer four (4) questions only.
2. All questions carry equal marks.
3. Any additional question(s) answered will not be marked.

1. You are operating a bookshop that also offers secretarial services. You
offer both cash and credit sales.
(a) Draw a programme for taking an insurance policy for your
business machinery. (07mks)
(b) Prepare an inquiry for the required stock. (06mks)
(c) Design a service schedule for the business machines. (06mks)
(d) Develop a credit policy for your business. (06mks)

2. You own a maize milling plant and you have noted with great concern
the need to stock more raw materials. Due to inadequate funds, you
have decided to acquire a loan of Shs.100,000,000.
(a) Prepare a programme for purchasing raw materials for the
business. (07mks)
(b) Draft a fixed capital expenditure budget for the business. (06mks)
(c) Formulate guidelines to ensure proper management of the loan
in the business. (06mks)
(d) Design a cash payment voucher to be used in the business. (06mks)

3. You are engaged in the production of liquid soap in your home area.
(a) Prepare a production plan for your business. (07mks)
(b) Draft policy guidelines for maintaining high quality products in
your business. (07mks)
(c) Draw a daily distribution schedule for your products. (06mks)

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(d) Write an appreciation letter to one of the outstanding
employees in your business. (05mks)

4. You have been hired as a Human Resource Manager of Blessed


Restaurant which is experiencing a high labour turnover.
(a) Identify the causes of the high labour turnover in the business. (07mks)
(b) Prepare a job description for an accountant of the business. (06mks)
(c) Design a procedure that should be followed by management
when handling indisciplined employees of the business. (04mks)
(d) Advise management on strategies that should be adopted for
managing workers’ discipline. (08mks)

5. The following information relates to UNIQUE TRADERS LTD


for the year ended 31.12.2018.
Details Shs (000)
Bank 12,000
Cash 18,000
Capital 157,000
Opening inventory 10,000
Furniture 30,000
Bad debts written off 4,000
Machinery 15,000
Accounts receivable 20,000
Returns inwards 2,000
Purchases discount 33,300
Carriage on sales 1,000
Purchases 75,000
Sales 90,000
Accounts payable 13,000
Returns outwards 4,000
Carriage on purchases 1,500
Bad debts recovered 8,000
Sales discount 2,000
Closing inventory 1,000
Bank overdraft 2,000
REQUIRED:
(a) Compute the;

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(i) Average stock (02mks)
(ii) Cost of sales (02mks)
(iii) Gross profit (02mks)
(iv) Net profit (03mks)

(b) Calculate the following ratios;


(i) Cash ratio (03mks)
(ii) Net profit to sales (03mks)
(iii) Rate of return on capital employed (03mks)
(iv) Stock turnover. (03mks)

(c) Interpret the following ratios in relation to 5(b) above.


(i) Cash ratio. (02mks)
(ii) Stock turnover (02mks)

6. The following information was obtained from the books of BABA


INVESTMENTS LTD for the months of January, February, March
and April 2016.
(i) On 1st January 2016, the business started with shs.4,000,000.
(ii) It expected cash sales of shs.6,000,000 per month; however, it once
expected to reduce by 10% in March.
(iii) The expected credit sales were shs.1,600,000 per month but payment
would be made the following month.
(iv) The business expected a donation of shs.800,000 in cash per month, but
this was to reduce by 12% after the first two months.
(v) The expected income from other sources was projected at shs.2,000,000
per month, effective the month of February.
(vi) The monthly rent income was shs.200,000, however, it was expected to
increase by 25% after the first two months.

(vii) The business planned to purchase a delivery van in January at


shs.14,000,000 on hire purchase. The down payment is shs.6,000,000 and
balance was to be paid in installments of 4:3:1 respectively in the following
3
months.
(viii) The business expected to acquire a loan from Finance Trust Bank Ltd in
February of shs.4,000,000. The loan was payable in four equal monthly
installments at an interest rate of 5% per month on reducing balance, with
effect from March 2016.
(ix) The expected monthly cash purchases were shs.3,000,000. It was expected
to reduce by 20% after two months.
(x) The business expected to issue a debenture certificate worth Shs.5,000,000
in March 2016.
(xi) Monthly payment for hired labour was sh.1,500,000.
(xii) The electricity bill expected to be cleared at the end of every month was
shs.1,200,000.

Required;
(a) Prepare a cash budget for the months of January, February,
March & April 2016. (20mks)
(b) Comment on the net cash position of BABA INVESTMENTS
LTD for four months. (05mks)

= END =

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