Question 20
Public Sector AccountingUse the following information to answer questions 20 and 21.
The health department of Banjul Local Government incurred the following expenditure in 2020:
Construction of hospital wards: Le 200,000
Purchase of hospital beds: Le 20,000
Purchase of stationeries: Le 15,000
Salaries and wages: Le 60,000
Purchase of drugs: Le 50,000
Purchase of x-ray machine: Le 100,000
The capital expenditure for the year is
- A.Le 445,000.
- B.Le 370,000.
- C.Le 320,000.
- D.Le 125,000.
Show the answer and explanation
Answer: C (Le 320,000.)
Explanation
Wards 200,000 + beds 20,000 + x-ray machine 100,000 = Le 320,000.