The amount received from the sale of grass by a club should be treated as __________.

Capital Receipt

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Revenue Receipt

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Asset

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Earned Income

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Solution

The correct option is B
Revenue Receipt

The amount received from the sale of grass by a club should be treated as a revenue receipt as it happens more frequently.

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Similar questions

Categorise the following government receipts into revenue and capital receipts. Give reasons for your answer.

(i) Receipt from sale of shares of a public sector undertaking.

(ii) Borrowing from public.

(iii) Profit of public sector undertakings.

(iv) Income tax received by government.

Receipts and Payments A/c is a summary of -

Amount received from which of the following is not a capital receipt?

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