Bookkeeping

7 Grade 8 Pre-Technical Studies questions on Bookkeeping, with worked marking schemes. 7 questions are available on this topic in full.

1. Question 1

   5 marks

   A trader records the following for a day: sales Ksh 6,000, purchases Ksh 2,500, wages Ksh 800, and rent Ksh 700. Prepare a simple statement showing total income, total expenditure, and the profit made.

   (5 marks)

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2. Question 2

   4 marks

   Njeri runs a fruit stall. In one week she received Ksh 8,500 from sales and spent Ksh 3,200 buying fruits and Ksh 1,300 on transport.

   (a) Calculate her total expenditure.

   (b) Calculate her profit or loss for the week.

   (4 marks)

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3. Question 3

   1 mark

   A small shopkeeper records every amount of money received from sales and every amount paid out for goods so as to know the business position. What name is given to this activity of orderly recording of business transactions?

   A. Marketing

   B. Bookkeeping

   C. Advertising

   D. Budgeting

   (1 mark)

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4. Question 4

   3 marks

   State three reasons why a small business should keep proper bookkeeping records.

   (3 marks)

   Marking scheme

   Any three (1 mark each): to know whether the business is making a profit or loss; to track income and expenditure; to help in planning/budgeting; to know what is owed/owing; to avoid theft and fraud; for reference/decision making; for tax purposes. (max 3)

5. Question 5

   4 marks

   Explain two ways in which keeping accurate records helps a young entrepreneur to grow their business.

   (4 marks)

   Marking scheme

   Any two, explained (2 marks each): shows profit/loss so the owner can make good decisions; helps in planning and budgeting for future purchases; helps track debtors/creditors so money is not lost; builds trust when seeking a loan; helps control expenses to increase profit.

6. Question 6

   1 mark

   A small shopkeeper records every sale and purchase so she knows how her business is doing. In bookkeeping, an amount the business owes to a supplier is best described as a:

   A. Profit

   B. Asset

   C. Capital

   D. Liability

   (1 mark)

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7. Question 7

   4 marks

   Distinguish between income and expenditure as used in bookkeeping, giving one example of each.

   (4 marks)

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