WAEC Financial Accounting 1998 Question 31

Question 31

Public Sector Accounting

The education department of Arimoro Local Government incurred the following expenses in 1995:
Construction of classrooms: N500,000
Purchase of tables and chairs: N50,000
Purchase of textbooks for library: N40,000
Annual inter-house sports competition: N20,000
Payment of teachers' salary: N80,000
Recurrent expenditure of the year was

  1. A.N170,000
  2. B.N130,000
  3. C.N120,000
  4. D.N100,000
  5. E.N80,000.
Show the answer and explanation

Answer: D (N100,000)

Explanation

Recurrent items = sports 20,000 + salaries 80,000 = N100,000.