Eko Local Government expenditure

Hospital building ---------------------- N200,000

Drugs ---------------------------------- N180,000

Hospital beds and mattresses ------------ N40,000

Doctors' and nurses' salaries ---------- N120,000

Administrative expenses ----------------- N50,000

Recurrent expenditure is

  • A N390,000
  • B N360,000
  • C N350,000
  • D N170,000
jamb 1995accounting

The correct answer is A. N390,000

Recurrent expenditure consists mainly of expenditure on wages, salaries and supplements, purchases of goods and services and consumption of fixed capital (depreciation). Hence we have;

180,000 + 40,000 + 120,000 + 50,000 =390,000

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