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Use the following information to answer the question The health department of Banjul Local Government...

Accounts - Principles of Accounts
WAEC 2023

Use the following information to answer the question

The health department of Banjul Local Government incurred the following expenditure in 2020:
 

   Le

 Construction of hospital wards

200,000

 Purchase of hospital beds

20,000

 Purchase of stationeries

15,000

 Salaries and wages

60,000

 Purchase of drugs

50,000

 Purchase of x-ray machine

100,000



The capital expenditure for the year is

  • A. Le 125,000
  • B. Le 320,000
  • C. Le 370,000
  • D. Le 455,000
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Correct Answer: Option B
Explanation

From the given information, the expenditures that are likely to be classified as capital expenditures are:

Construction of hospital wards: Le200,000
Purchase of hospital beds: Le20,000
Purchase of x-ray machine: Le100,000
To calculate the capital expenditure for the year, we add these amounts together:

Le200,000 + Le20,000 + Le100,000 = Le320,000

Therefore, the capital expenditure for the year is Le320,000.


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NECO June/July 2024 - Get offline past questions & answers - Download objective & theory, all in one app 48789
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