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WAEC Financial Accounting 2017 Question 48

Question 48

Public Sector Accounting

Nzemaman Local Government incurred the following expenditure in the year 2015 (D): Construction of market stalls 120,000; Staff salaries 40,000; Purchase of stationery 9,000; Sinking of boreholes 200,000; Building of classrooms 90,000; Maintenance of vehicles 35,000; Purchase of equipment 28,000.
Capital expenditure for the local government is

  1. A.D473,000.
  2. B.D438,000.
  3. C.D422,000.
  4. D.D410,000.
Show the answer and explanation

Answer: B (D438,000.)

Explanation

Capital items: market stalls 120,000 + boreholes 200,000 + classrooms 90,000 + equipment 28,000 = D438,000.