Which of the following is not capital reserve it:

The correct answer is: D. Profit on sale of fixed assets.

A capital reserve is a reserve that is created from capital profits, such as the premium on the issue of shares or the profit prior to incorporation. It is not used for the ordinary purposes of the business, but is kept aside for special purposes, such as the purchase of fixed assets or the payment of dividends.

A profit on the sale of fixed assets is not a capital profit, as it is not derived from the sale of capital assets. It is a revenue profit, and should be treated as such.

Here is a brief explanation of each option:

• Premium on the issue of shares: This is the amount that is received by a company when it issues shares at a
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