WAEC - Accounts Principles Of Accounts (2023 - No. 2)

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 recurrent expenditure for the year is

Le 370,000
Le 125,000
Le 320,000
Le 445,000

Explanation

From the given information, the expenditures that are likely to be classified as recurrent expenditures are:

Purchase of stationeries: Le15,000
Salaries and wages: Le60,000
Purchase of drugs: Le50,000
To calculate the recurrent expenditure for the year, we add these amounts together:

Le15,000 + Le60,000 + Le50,000 = Le125,000

Therefore, the recurrent expenditure for the year is Le125,000.

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