NECO Accounting 2022 Theory — Question 8

Model answer

(A) Statement of Capital Expenditure for the year ended 31 December 2020 (students record only expenditure of a capital nature - items that add to the value of a fixed asset and are executed by the development fund): Construction of market stalls D100,000; Construction of health care centre D120,000; Sinking of borehole D80,000; Purchase of ambulance D60,000; Office equipment and machines D20,000; Construction of laboratory D130,000; Purchase of hospital equipment D90,000; Purchase of generator D40,000; Purchase of water transplant D110,000; Purchase of office furniture D80,000; Construction of daycare centre D110,000; Construction of toilet D60,000; Provision of street light D90,000 TOTAL Capital Expenditure = D1,090,000 (B) Statement of Revenue Expenditure for the year ended 31 December 2020 (recurrent day-to-day running costs, charged to the consolidated fund): Maintenance of road D30,000; Repairs of vehicles D10,000; Lubricants D20,000; Electricity bill D15,000; Yellow fever vaccine D12,000; Servicing generator D5,000; Travelling expenses D10,000; Stationery D5,000; Drugs for health care D30,000; Environmental sanitation D40,000; Staff benefit D20,000; Telephone expenses D12,000; Refuse disposal D30,000; Salaries D100,000; Hospitality expenses D30,000 TOTAL Revenue Expenditure = D369,000