Concept:Capital reserves arise from capital gains or non-trading activities, while revenue reserves come from normal business profits.
Explanation:The question asks which item is not a capital reserve.
Revaluation surplus results from an increase in asset value, so it is a capital reserve.
Pre-incorporation profits are profits made before a company was legally formed, treated as capital reserve.
Share premium is the excess received over the par value of shares, classified as a capital reserve.
General reserves are created from retained profits and are set aside out of revenue profits, making them revenue reserves.
Therefore, general reserves do not belong to capital reserves.
Answer:D. general reserves