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WAEC Financial Accounting 1997 Question 50

Question 50

Final Accounts of a Sole Trader

Which of the following is not a revenue receipt?

  1. A.Receipt from sales of goods
  2. B.Rent from premises sublet
  3. C.Interest on savings account
  4. D.cash on sale of fixed asset
  5. E.Receipt from trade debtors.
Show the answer and explanation

Answer: D (cash on sale of fixed asset)

Explanation

Cash from selling a fixed asset is a capital receipt; the others come from normal trading or income.