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WAEC Financial Accounting 1997 Question 29

Question 29

Public Sector Accounting

Kudi Local Government Council incurred the following expenditure in 1995:
Payment of salaries: N140,000
Purchase of drugs for dispensaries: N80,000
Purchase of books for Library: N30,000
Sinking of wells: N70,000
Extension of Council offices: N160,000
The amount of capital expenditure for 1995 was

  1. A.N260,000
  2. B.N230,000
  3. C.N220,000
  4. D.N160,000
  5. E.N140,000
Show the answer and explanation

Answer: A (N260,000)

Explanation

Capital items are library books 30,000 + wells 70,000 + office extension 160,000 = N260,000.