๐Ÿ“ข Too many exams? Donโ€™t know which one suits you best? Book Your Free Expert ๐Ÿ‘‰ call Now!

  • google app store apple app store
  • โœ–

      Question

      Which of these is not an example of a capital receipt?

      A Receipt on sale of fixed asset (amount representing capital) Correct Answer Incorrect Answer
      B Share premium on issue of shares Correct Answer Incorrect Answer
      C Proceeds from sale of investments (part of capital) Correct Answer Incorrect Answer
      D Sale of scrap from operations (routine) Correct Answer Incorrect Answer

      Solution

      Sale of scrap is a routine by-product of operations and is considered a revenue receipt. The other options are non-recurring and related to the capital or financing of the business.

      Practice Next
      ask-question