WAEC Financial Accounting 1992 Question 41

Question 41

Capital and Revenue Expenditure

Rufai, 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?

  1. A.₦24,468
  2. B.₦20,200
  3. C.₦4,268
  4. D.₦3,600
  5. E.₦2,810.
Show the answer and explanation

Answer: C (₦4,268)

Explanation

2,100 + 600 + 900 + 558 + 110 = ₦4,268.