Question 41
Capital and Revenue ExpenditureRufai, a vulcaniser bought 4 machines for ₦20,200 and incurred the following expenses for the year ended 31st December, 1990
Glue: ₦2,100
Thread: ₦600
Kerosine: ₦900
Rubber: ₦558
Matches: ₦110
He received ₦5,772 from customers. Two machines were later sold for ₦6,990 and ₦5,670 respectively.
What is his revenue expenditure?
- A.₦24,468
- B.₦20,200
- C.₦4,268
- D.₦3,600
- E.₦2,810.
Show the answer and explanation
Answer: C (₦4,268)
Explanation
2,100 + 600 + 900 + 558 + 110 = ₦4,268.