Candidates’ Name: …………………………………..…………………………..…………………..

Signature: …………………..………………………

(Do not write your school / Center name or Number anywhere on this booklet)

845/1

ENTREPRENEURSHIP EDUCATION

Paper 1

July / Aug 2024

2 ^𝟏 HOURS

𝟐

Uganda Certificate Of Education ENTREPRENURSHIP EDUCATION

Paper 1

TIME: 2 hours 30 minutes INSTRUCTIONS TO CANDIDATES

This paper consists of section A and B. It has five examination items. Section A has three compulsory items.

Answer one item from Section B. Answer four examination items in all.

Any additional item(s) answered will not be scored.

All responses must be written in the response booklet(s) provided.

Item 1

SECTION A

Answer all items in this section

Moses is running a large restaurant in Bukaali trading centre which he started after winning a cheque of UGX 3,000,000 /= when he emerged the best swimmer in Buvuma district. It was easy to start a restaurant because of the large piece of land

(4 acres) owned by his mother. In 2018, he used his father’s land title to acquire UGX 10,000,000 /= loan for Buvuma SACCO. He did not live a luxurious life and would re-invest all the profits to enable him affort over draft facilities because he was running a current account with other three banks. He now has four branches and has invested other three friends of his to join into a partnership.

Task

1. Discuss the main source of capital Moses used to start his (04 Scores)
2. What benefits are enjoyed by Moses for operating numerous branches? (08 Scores)
3. Advise Moses on demerits of the legal form of business wanting to transform (08 Scores)

Item 2

Moses owns the juice processing business in a trading centre in his home area. He wakes up early at 6:00am to organize the juice for his customers up to late evening at 6:00pm. Due to increased demand of the juice he has decided to recruit more three employees to handle production, packing, distribution and marketing of juice products.

The business has three major challenges of inadequate funds, shortage of raw material and changing customer preference. Recently, the government of Uganda has introduction Parish Development Model Funds in their area.

Task:

1. What are the likely benefits of Moses’ plan to acquire the above funds?(07 Scores)
2. Explain to Moses the factors he should consider when selecting the supplier of raw (07 Scores)

1. Use your entrepreneurship skill to guide him on the budget of shs. 1,000,000 from Parish Model (06 Scores)

Item 3

Most of the entrepreneurs in Uganda engaged in both local and foreign trade lack information about taxation policy and don’t understand most of the taxes they are expected to pay and what they mean.

Task

1. Help them understand some of those taxes they are expected to pay and what they (10 Scores)
2. What may hinder the entrepreneurs from meeting the about obligation? (10 Scores)

SECTION B

Answer one item in this section

Item 4:

Mary operates Sure Bakery Limited in Namasagali Town Council. She has provided you with the following transactions and seeks for your assistance. 2023 June 1^st started the business with cash at hand shs. 50,000.

Cash at bank shs. 120,000 2^nd bought goods for cash shs. 32,000.

4^th bought furniture by cheque shs. 20,000. 6^th sold goods by cheque shs. 12,000.

9^th withdraw cash from the bank for office use shs. 10,000. 10^th received cash from Kato shs. 15,000.

14^th paid wages in cash shs. 5,000. 17^th banked cash shs. 11,000.

22^nd bought stationary by cheque shs. 7,000. 23^rd cash sale shs. 8,000.

25^th paid rent in cash shs. 7,500.

27^th withdraw cash shs. 2,000 for personal use. 30^th paid electricity by cheque shs. 5,000.

Task: Help the Entrepreneur.

1. Prepare an appropriate subsidiary book to record the above (10 Scores)
2. Prepare a statement to check the arithmetic accuracy of entries in the (10 Scores)

Item 5:

In January 2024, Tip Top Limited accountant went to China for further studies before preparing the financial statement from the business. The accountant the details obtained from the ledger balances of the Bakery for the year ended 30/June/2024 as follows;

Task:

Prepare for Tip Top Limited the relevant financial statement to;

• Check the arithmetic accuracy of the ledger (10 Scores)
• Determine the profit or loss made by the (10 Scores)

END