Test Index

WAEC Accounting 2012 Paper

Question : 44

Total: 47

\text{\& Le}

\text{---}\;\text{Construction and hospital wards}\;\& 300,000

\;\text{purchase of hospital beds}\;\& 40,000

\;\text{salaries and wages}\;\& 80,000

\;\text{Purchase of drugs}\;\& 55,000

\;\text{purchases of x-ray machine}\;\& 150,000

Capital expenditure for the year was

Solution:

Concept:

Capital expenditure is spending on acquiring or improving fixed assets.

Explanation:

Fixed assets include construction, hospital beds, and x-ray machines.

Add only the capital items:

300,000 + 40,000 + 150,000

Salaries and wages are revenue expenditure.

Purchase of drugs is also revenue expenditure.

So, capital expenditure

= 490,000

Answer:

Le 490,000 (Option B).

Go to Question:

Prev Question

Next Question