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The health department of Banjul Local Government incurred...

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

A.

Le125,000

B.

Le320,000

C.

Le370,000

D.

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.