Accounting 0452 · IGCSE · Capital and revenue expenditure and receipts

Capital and revenue expenditure and receipts — practice question

A wholesaler recorded these transactions: • goods worth $30000 were sold on credit • a cheque for $12000 was received from the sale of old fixtures at book value How should these amounts be classified?

  • Arevenue receipt: nil; capital receipt: $42000
  • Brevenue receipt: $12000; capital receipt: $30000
  • Crevenue receipt: $30000; capital receipt: $12000
  • Drevenue receipt: $42000; capital receipt: nil

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