Question 34
Public Sector AccountingUse the following information to answer questions 34 and 35.
The Health Department of Zango Local Government incurred the following expenditure in 2010:
Construction of hospital wards: Le 300,000
Purchase of hospital beds: Le 40,000
Salaries and wages: Le 80,000
Purchase of drugs: Le 55,000
Purchase of X-ray machine: Le 150,000
Capital expenditure for the year was
- A.Le 545,000
- B.Le 490,000
- C.Le 450,000
- D.Le 300,000
Show the answer and explanation
Answer: B (Le 490,000)
Explanation
Capital items last for years: wards 300,000 + beds 40,000 + X-ray machine 150,000 = Le 490,000.