Question

Which of the following is not a Capital Receipt?
(a) Sale of old Newspaper
(b) Sale of Machinery
(c) Loan taken from Bank
(d) Capital introduced by proprietor

Answer 1

Answer:

(a) Sale of old newspaper

Answer 2

(a) Sale of old Newspaper

Capital money in the form of money or other assets owned by an individual or organization or available for a purpose such as starting or investing in a company.

capital receipt is

• Capital receipts are receipts that create liabilities or reduce financial assets. They also refer to incoming cash flows.
• As sale of newspaper doesn't come under the main activities (or source of earning) of the business hence is not included in the capital receipt.