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\(\begin{array}{c|c} Le\\ \hline \text{Construction and hospital wards} 300,000\\ ...

\(\begin{array}{c|c} & Le\\ \hline \text{Construction and hospital wards} & 300,000\\ \text{purchase of hospital beds} & 40,000 \\ \text{salaries and wages}& 80,000\\ \text{Purchase of drugs} & 55,000\\ \text{purchases of x-ray machine} & 150,000\end{array}\)
The amount of recurrent expenditure was
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  • A Le 245,000
  • B Le 175,000
  • C Le 135,000
  • D Le 80,000
Correct Answer: Option C
Explanation:
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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