Question 21
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 recurrent 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: D (Le 125,000.)
Explanation
Stationeries 15,000 + salaries 60,000 + drugs 50,000 = Le 125,000.