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 capital expenditure for the year is
Le125,000
Le320,000
Le370,000
Le455,000
Correct answer is B
From the given information, the expenditures that are likely to be classified as capital expenditures are:
Construction of hospital wards: Le200,000
Purchase of hospital beds: Le20,000
Purchase of x-ray machine: Le100,000
To calculate the capital expenditure for the year, we add these amounts together:
Le200,000 + Le20,000 + Le100,000 = Le320,000
Therefore, the capital expenditure for the year is Le320,000.