Option 2: (A) - (III), (B) - (I), (C) - (IV), (D) - (II) -> Let's match each item correctly:
(A) Purchase of stocks of a private company by the general government creates a capital asset, making it Capital expenditure (III).
(B) Sale of equity of a public sector enterprise to private sector is disinvestment that reduces government assets, classifying it as Capital receipts (I).
(C) Payment of interest by the government on loans is a recurring expense that doesn't create assets, making it Revenue expenditure (IV).
(D) Stamp duty received by the government is a tax revenue that doesn't reduce assets or create liabilities, classifying it as Revenue receipts (II).
Key distinction: Capital transactions involve assets/liabilities, while Revenue transactions are routine/recurring. Receipts add to government funds; expenditures reduce them. -> correct