Interest on a term loan for the purchase of machinery where the commercial production has already begun is___________.

Q. Interest on a term loan for the purchase of machinery where the commercial production has not begun till the last day of the accounting year is _________________.

Q. Match List I with List II and select the correct answer using the codes given below the lists.
List I List II
A. Heavy advertisement expenses 1. Capital expenditure
B. Travelling expenses of the salesman 2. Revenue expenditure
C. Profit on the sale of office building 3. Capital gain
D. Purchase of plant and machinery 4. Deferred revenue expenditure

Q. Expenses on a Foreign Tour to purchase a machinery is _________________.

Q. Classify the following into Assets, Liabilities, Capital, Revenue, and Expenses:

(i) Plant and Machinery;	(ii) Bank Loan;	(iii) Sales;	(iv) Rent;
(v) Discount Received;	(vi) Carriage Inwards;	(vii) Carriage outwards;	(viii) Purchases;
(ix) Bills Payable;	(x) Wages;	(xi) Advance Income;	(xii) Accrued Income;
(xiii) Goodwill;	(xiv) Furniture and Fixtures;	(xv) Outstanding Expenses;	(xvi) Capital.

Q. An amount of Rs. 1,25,000 spent on travelling expenses of the company's directors to a foreign trip for purchase of a plant and machinery is a ________.