WAEC Financial Accounting 2012 Question 35

Question 35

Public Sector Accounting

Use 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
The amount of recurrent expenditure was

  1. A.Le 245,000
  2. B.Le 175,000
  3. C.Le 135,000
  4. D.Le 80,000
Show the answer and explanation

Answer: C (Le 135,000)

Explanation

Recurrent items are used up in the year: salaries and wages 80,000 + drugs 55,000 = Le 135,000.