WAEC Accounting 2024 Paper

Concept:Recurrent expenditure refers to everyday running costs, not purchases of fixed assets.Explanation:Motor van purchase is a capital expense because it buys a fixed asset. So exclude $370{,}000$.Building a laboratory is also a capital expense, so exclude $760{,}000$.Purchase of drugs is recurrent because drugs are consumable supplies.Electricity and repairs of equipment are routine operating expenses.Thus, recurrent expenditure $= \mathrm{D}110{,}000 + \mathrm{D}26{,}000 + \mathrm{D}10{,}000$.Calculate: $110{,}000 + 26{,}000 + 10{,}000 = 146{,}000$.Answer:Recurrent expenditure is $\mathrm{D}146{,}000$. The correct option is A.