STUDENT NAME_______________________SCHOOL NAME_______________________

2025 M23/II

SOUTH WEST EDUCATION DIVISION

2025 MALAWI SCHOOL CERTIFICATE OF EDUCATION MOCK EXAMINATION

BUSINESS STUDIES
PAPER II
(50 marks)

Subject Number: M023/II

Friday,11 April Time Allowed: 1 Hours 30 mins
1:30- 3:00pm

Instructions

1. This paper contains 8 printed pages.

Please check.

2. Answer all questions in the spaces

provided.

3. Write your name on all pages.

4. Calculators may be used.

5. In the table proved on this page, tick

against the question numbers you have
answered.

6. At the end of examination, hand in your

paper to the invigilator.

© SWED 2025 Turnover

STUDENT NAME_______________________________SCHOOL NAME_______________________
2025 M023/II
Page 2 of 8

1. a. The sales Manager,Mrs. Mary Zitha of Happy Motors Limited, P.O Box 550 Mbalame,
wants to purchase car spares from Zitherepano manufacturers, P.O Box 222 Chigwere. She
wants goods delivered within seven days. The spare parts are as follows:
 100 5-litre bottles of diesel engine oil @ K78,000 per bottle
 20 pairs shock absorbers @ K135,000 per pair
 2 cartons radiator coolant @ K55,000 per carton
 15 boxes brake pads @ K15,000 per box
Use this information to prepare an order form number 0991

Continued…/
STUDENT NAME_______________________________SCHOOL NAME_______________________
2025 M023/II
Page 3 of 8

(9 marks)
1 b. A trader purchased goods worth K250, 000. If the profit mark-up is 17% of
the cost price. Calculate the selling price of the goods.

(3 marks)

2a. The table below show a break even graph of a business. Use it to answer
questions that follow;

Mkw
STUDENT NAME_______________________________SCHOOL NAME_______________________
2025 M023/II
Page 4 of 8

(i) Calculate the selling price per unit at break-even point.

(3 marks)

Continued…/
STUDENT NAME_______________________________SCHOOL NAME_______________________
2025 M023/II
Page 5 of 8

(ii) Calculate the variable cost per unit at break-even point.

(4 marks)

(iii) Calculate the fixed cost per unit at break-even point output.

(1 mark)

Continued…/
STUDENT NAME_______________________________SCHOOL NAME_______________________
2025 M023/II
Page 6 of 8

2b. The following transactions were extracted from the books of Rile Traders on 31 December,
2024.
K
Capital 1,200,0000
Creditors 360,000
Motor Van 400,000
Furniture 400,000
Salaries and wages 120,000
Debtors 160,000
Cash 480,000
Prepare Rile Traders Trial Balance as at 31 December, 2024.

(10 marks)
Continued…/
STUDENT NAME_______________________________SCHOOL NAME_______________________
2025 M023/II
Page 7 of 8

3a. A bolt manufacturing company pays its employees K600,000 per annum as basic
salary. The manufacturing company also pays a bonus of K200 per 1000 bolts.

Calculate the labor cost per employee if an employee produces 144,000 bolts per mouth.

(7 marks)

3b. On 1 January, 2024 Mwaura Traders cash book showed a credit balance of K 300, 000 at the
bank and a debt balance of K50,500 in hand.

During the month, the following transactions took place.

January 1 cash sales K 43,000
January 16 cheque payment from debtor’s K 720,000
January 28 paid a creditor K 200,000, partly by cheque K 160,000 and the
balance by cash

Continued…/
STUDENT NAME_______________________________SCHOOL NAME_______________________
2025 M023/II
Page 8 of 8

Prepare a two column cash book for the month of January.

(13 Marks)

END OF QUESTION PAPER

NB: This paper contains 8 printed pages