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JAMB Principles of Accounts 1995 Question 48

Question 48

Public Sector Accounting

Eko Local Government Expenditure
Hospital buildings ₦200 000
Drugs ₦180 000
Hospital beds and mattresses ₦40 000
Doctors' and nurses' salaries ₦120 000
Administrative expenses ₦50 000
Capital expenditure is

  1. A.₦420 000
  2. B.₦380 000
  3. C.₦240 000
  4. D.₦200 000
Show the answer and explanation

Answer: C (₦240 000)

Explanation

Capital items are those that last for years: hospital buildings 200 000 + beds and mattresses 40 000 = ₦240 000.