Question on: WAEC Accounting - 2012
\(\begin{array}{c|c} & Le\ \hline \text{Construction and hospital wards} & 300,000\ \text{purchase of hospital beds} & 40,000 \ \text{salaries and wages}& 80,000\ \text{Purchase of drugs} & 55,000\ \text{purchases of x-ray machine} & 150,000\end{array}\)
The amount of recurrent expenditure was
A
Le 245,000
B
Le 175,000
C
Le 135,000
D
Le 80,000
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Correct Option: C
Recurrent expenditure on goods and services is expenditure, which does not result in the creation or acquisition of fixed assets (new or second-hand). It consists mainly of expenditure on wages, salaries and supplements, purchases of goods and services and consumption of fixed capital (depreciation).
80000 + 55000 = 135000
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