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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 recurrent expenditure for the year is

  • A. Le 370,000
  • B. Le 125,000
  • C. Le 320,000
  • D. Le 445,000
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Correct Answer: Option B
Explanation

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

Purchase of stationeries: Le15,000
Salaries and wages: Le60,000
Purchase of drugs: Le50,000
To calculate the recurrent expenditure for the year, we add these amounts together:

Le15,000 + Le60,000 + Le50,000 = Le125,000

Therefore, the recurrent expenditure for the year is Le125,000.


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WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
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