WAEC Accounting 2023 Paper

Concept:Capital expenditure includes spending on acquiring or improving long-term assets such as buildings and equipment.Explanation:From the given information, identify the items that provide lasting benefits to the health department.These items are classified as capital expenditure:• Construction of hospital wards: Le 200,000• Purchase of hospital beds: Le 20,000• Purchase of x-ray machine: Le 100,000Add all the capital items together:$$Le\,200,000 + Le\,20,000 + Le\,100,000 = Le\,320,000$$Recurrent expenditure, such as salaries, drugs, and maintenance, is not included in capital expenditure.Therefore, the total capital expenditure for the year is Le 320,000.Answer:Le 320,000Correct option: B.