MARKING GUIDE- MOCK GCE EXAMINATION ADV.
LEVEL- 705 ACCOUNTING
PAPER ONE
QUESTION ANSWER QUESTION ANSWER QUESTION ANSWER QUESTION ANSWER QUESTION ANSWER
1 D 11 A 21 C 31 D 41 C
2 C 12 D 22 A 32 C 42 B
3 B 13 D 23 C 33 A 43 C
4 D 14 B 24 A 34 A 44 A
5 C 15 C 25 C 35 B 45 B
6 A 16 B 26 B 36 C 46 D
7 B 17 A 27 B 37 B 47 C
8 B 18 B 28 B 38 D 48 D
9 B 19 C 29 D 39 C 49 D
10 B 20 A 30 C 40 C 50 B
P2
Question 6
Question 6
a) result realised for the year 2018 = 40% x 40 000 000 = 16 000 000 (2mks)
b) fixed cost and the variable cost. (8mks)
BEP = = = 8,000,000 FCFA
FC =
FC = 8,000,000 – 0.2(Variable Cost).................................................................... (1)
Result = Turnover - Variable Cost – Fixed Cost.................................................. (2)
Substituting (1) in (2) gives
16,000,000 = 40,000,000 – Variable Cost – (8,000,000 – (0.2 X Variable Cost)
16 000 000 =40 000 000 -8 000 000 –variable cost – 0.2variable cost
0.8 variable cost =40 000 000 - 8 000 000 – 16 000 000
Variable Cost = = 20 000 000FCFA
Fixed Cost = 8,000,000 – 0.2(20 000 000) = 4 000 000 FCFA
c) Calculation of the margin of safety and the date of attainment of the break – even point. (5mks)
Margin of Safety = Turnover – BEP = 40,000,000 – 8,000,000 = 32,000,000 FCFA
M= = 2 month 12 days: Date of Attainment = 12th March 2010
d) Presentation of an operating differential table to show the contribution and the result. (5mks)
Element Qty UP Amount
Turnover 40,000,000
Variable cost 20,000,000
Contribution 20,000,000
Fixed cost 4 000,000
Result 16,000,000
