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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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