**Sale proceeds of fixed assets are a) Capital Profit b) Revenue Profit C) Capital Receipt d) Revenue Receipt? Explain in detail.**

The sale proceeds of fixed assets can be categorized as a **Capital Receipt**. To understand why, let's define each term and discuss their differences.

**Capital Profit:**
Capital profit refers to the gain or profit generated from the sale of a capital asset, such as fixed assets, investments, or property. It represents the difference between the selling price and the cost of acquisition or book value of the asset. However, it is important to note that the sale proceeds themselves are not considered capital profit. Instead, the capital profit is calculated by deducting the cost or book value from the selling price.

**Revenue Profit:**
Revenue profit, also known as operating profit or gross profit, is the profit generated from regular business operations. It is calculated by deducting the cost of goods sold (COGS) or direct expenses from the revenue earned. Revenue profit is typically associated with the core business activities and does not include gains from the sale of assets.

**Capital Receipt:**
A capital receipt refers to the inflow of funds or assets that do not arise from regular business operations. It includes receipts from the sale of fixed assets, investments, loans, or capital contributions. Capital receipts represent the acquisition of capital or non-recurring funds, which contribute to the long-term financial stability and growth of an entity. The sale proceeds of fixed assets are considered capital receipts because they involve the disposal of a capital asset and the resulting inflow of funds.

**Revenue Receipt:**
Revenue receipts, also known as income receipts, are the funds or assets generated from routine business activities. They include receipts from the sale of goods or services, interest earned, rent received, or any other operational income. Revenue receipts are typically associated with the day-to-day operations of a business and contribute to its regular cash inflows.

In summary, the sale proceeds of fixed assets are categorized as capital receipts because they represent the disposal of a capital asset and the resulting inflow of funds. It is important to distinguish between capital profit and capital receipt, as the profit is calculated based on the sale proceeds, while the receipt refers to the actual inflow of funds.