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      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.

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