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    Question

    All of the following are capital receipts, except

    ________
    A Share Capital Correct Answer Incorrect Answer
    B Share premium Correct Answer Incorrect Answer
    C Debenture Correct Answer Incorrect Answer
    D Trade Creditor Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Capital receipts are┬аfunds that a companyreceives from non-operational sources.┬аThey are typically non-recurring transactions that increase liabilities or decrease assets.┬аCapital receipts are used for financing long-term expenditures or debt repayments. These include capital raised and borrowings raised, related receipts. Trade creditor is a revenue receipt.

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