Question

Which of the following is not a capital receipt
a) Donations for tournament
(b) donation for building fund
c) Life membership fee
(d) entrance fee​

Answer 1

Which of the following is not a capital receipt

a) Donations for tournament

(b) donation for building fund

c) Life membership fee

(d) entrance fee​

Explanation:

Capital receipts: They can be defined as the income flow from the sale of fixed assets,  cash from the issuing of a debt instrument which includes loans and bonds,or cash from the sale of shares in the business.

In the above case the first three are capital receipts. The correct answer is (d) entrance fee​.