Question 35
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
The amount of recurrent expenditure was
- A.Le 245,000
- B.Le 175,000
- C.Le 135,000
- 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.