1.
Which of the following are of capital nature?
A. 
B. 
C. 
Wages paid for installation of machinery
D. 
2.
A second hand car is purchased for Rs. 10,000, the amount of Rs. 1,000 is spent on its repairs, Rs. 500 is incurred to get the car registered in owner's name and Rs. 1,200 is paid as dealer's commission. The amount debited to car account will be
A. 
B. 
C. 
D. 
3.
If repair cost is Rs. 25,000, whitewash expenses are Rs. 5,000, cost of extension of building is Rs. 2,50,000 and of improvement in electrical wiring system is Rs. 19,000; the amount to be expensed is
A. 
B. 
C. 
D. 
4.
Rs. 200 paid as wages for erecting a machine should be debited to
A. 
B. 
C. 
D. 
5.
Rs. 2,500 spent on the overhaul of a machine purchased second-hand is
A. 
B. 
C. 
Deferred revenue expenditure
D. 
6.
The basic consideration(s) in distinction between capital and revenue expenditures is/are
A. 
B. 
Effect on revenue generating capacity of business.
C. 
D. 
7.
A bad debt recovered during the year is a
A. 
B. 
C. 
D. 
8.
Carriage charges paid for a new plant purchased if debited to carriage account would affect
A. 
B. 
C. 
Plant and carriage accounts
D. 
9.
On January 1, 2006 Victory Ltd., purchased a second hand machinery for Rs.50,000 and spend Rs.2,000 as shipping and forwarding charges, Rs.1,000 as import duty, Rs.1,000 as carriage inwards, Rs.500 is repair charges, Rs.200 as installation charges, Rs.400 as brokerage of the middle man and Rs.100 for an iron pad. Total cost of machinery is
A. 
B. 
C. 
D. 
10.
Material costing Rs.700 in the erection of the machinery and the wages 4 paid for it amounting to Rs. 400 should be debited to
A. 
B. 
C. 
D. 
11.
Expenses incurred to retain the title of a building is a
A. 
B. 
C. 
Deferred revenue expenditure
D. 
12.
Rs.5,000 spent to remove a worn out part and replace it with a new one is
A. 
B. 
C. 
Deferred revenue expenditure
D. 
13.
Rs.5,000 was spent by Mrs. Saroj for addition to machinery in order to increase the production capacity. The amount is:
A. 
B. 
Deferred revenue in nature
C. 
D. 
14.
An old furniture was purchased for Rs.10,000.It was repaired for Rs.100.The repairs account should be debited by
A. 
B. 
C. 
D. 
15.
Rs. 5,000 incurred for upgradation of computer by installation of 128 MB RAM is
A. 
B. 
Deferred revenue expenditure
C. 
D. 
16.
Rs. 5,000 spent on maintenance of plant and machinery is._______ .
A. 
B. 
C. 
Deferred capital expenditure
D. 
17.
Mohan runs a restaurant. He renovates some of the old cabins to increase some space. The amount of Rs. 15,000 was incurred on renovation. The amount to be charged to profit and loss account is
A. 
B. 
C. 
D. 
18.
Money paid to MTNL Rs.10,000 for installing telephone in office is
A. 
B. 
C. 
D. 
19.
Cost of tour abroad by the sales manager to develop markets (tour was successful) is
A. 
B. 
C. 
Deferred revenue expenditure
D. 
20.
Heavy amount spent on advertisement is______
A. 
B. 
C. 
Deferred revenue expenditure
D.