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JAMB Principles of Accounts 1995 Question 49

Question 49

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
Recurrent expenditure is

  1. A.₦390 000
  2. B.₦360 000
  3. C.₦350 000
  4. D.₦170 000.
Show the answer and explanation

Answer: C (₦350 000)

Explanation

Recurrent items are used up within the year: drugs 180 000 + salaries 120 000 + administrative 50 000 = ₦350 000.