Use the following information to answer the question The health department of Banjul Local Government...
FINANCIAL
WAEC 2023
Use the following information to answer the question
The health department of Banjul Local Government incurred the following expenditure in 2020:
| Le | |
Construction of hospital wards | 200,000 |
Purchase of hospital beds | 20,000 |
Purchase of stationeries | 15,000 |
Salaries and wages | 60,000 |
Purchase of drugs | 50,000 |
Purchase of x-ray machine | 100,000 |
The capital expenditure for the year is
- A. Le 125,000
- B. Le 320,000
- C. Le 370,000
- D. Le 455,000
Correct Answer: B. Le 320,000
Explanation
From the given information, the expenditures that are likely to be classified as capital expenditures are:
Construction of hospital wards: Le200,000
Purchase of hospital beds: Le20,000
Purchase of x-ray machine: Le100,000
To calculate the capital expenditure for the year, we add these amounts together:
Le200,000 + Le20,000 + Le100,000 = Le320,000
Therefore, the capital expenditure for the year is Le320,000.
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