Classifying transactions as revenue or capital receipts

Steps:

• Identify sale of goods on credit as core trading activity, recording $30,000 as revenue receipt in the income statement.
• Note receipt of $12,000 cheque from fixtures sold at book value, which debits cash and credits the asset account with no profit or loss impact.
• Confirm no income arises from the fixtures sale, so it does not qualify as a capital receipt.
• Conclude total classification: revenue receipt $30,000, capital receipt$0.

Why C is correct:

• Revenue receipts include income from normal operations like goods sales ($30,000), while capital receipts require non-operating gains (none here, as fixtures sale at book value has zero P/L effect per accounting standards).

Why the others are wrong:

• A: Misclassifies goods sale as non-revenue and inflates capital by adding unrelated amounts.
• B: Reverses natures—goods sale is revenue, not capital; fixtures yield no receipt.
• D: Erroneously treats fixtures cash as revenue, ignoring its non-operating, no-gain status.

Final answer: C