Answer (a): To be treated as capital expenditure and added to the cost of Land.
The registration fees paid for the purchase of land by M/s XYZ Ltd should be recorded as an expense in the company's accounting records. The registration fees are a cost associated with acquiring the land, and should be reported as such on the company's financial statements.

Treatment of Registration Fees for Land Purchase:

Introduction:
When land is purchased by a company, there are various costs associated with the acquisition. One such cost is the registration fees paid to the authorities for the transfer of ownership. The company's accountant needs to determine the appropriate treatment of these registration fees in the financial statements. Let's explore the options available:

(a) To be treated as capital expenditure and added to the cost of Land:
- Capital expenditure refers to costs incurred to acquire or improve a long-term asset, such as land.
- Treating registration fees as capital expenditure means adding them to the cost of land on the balance sheet.
- This treatment aligns with the principle of matching costs with revenues, as the fees are directly related to the land acquisition.
- It also enhances the accuracy of financial statements by reflecting the true cost of acquiring the land.
- However, it is important to ensure compliance with accounting standards and regulations in the specific jurisdiction.

(b) To be treated as revenue expenditure and added to the cost of Land:
- Revenue expenditure refers to costs incurred for day-to-day operations and maintenance of a business.
- Treating registration fees as revenue expenditure means adding them to the cost of land on the income statement.
- This treatment implies that the fees are considered as ordinary operating expenses.
- However, it might not accurately represent the true cost of acquiring the land, as the fees are directly associated with the purchase transaction.

(c) To be treated as expenses:
- Treating registration fees as expenses means recognizing them as an immediate cost in the income statement.
- This treatment implies that the fees are fully deducted in the period they are incurred.
- It is suitable when the fees are considered as one-time transaction costs and not related to the acquisition of a long-term asset.
- However, this treatment may not align with the matching principle if the fees are directly attributable to the land purchase.

(d) No entry will be done:
- This option implies not recognizing the registration fees in the financial statements at all.
- However, this approach may not be appropriate as it fails to reflect the economic reality of the land acquisition.
- It is essential to record all relevant costs to provide a true and fair view of the company's financial position and performance.

Conclusion:
After considering the options, the treatment of registration fees for land purchase should be based on the specific circumstances and accounting standards applicable in the jurisdiction. Generally, the most appropriate treatment is to treat the fees as capital expenditure and add them to the cost of land. However, it is always recommended to consult with a professional accountant or refer to the relevant accounting standards for accurate guidance.

Answer (a): To be treated as capital expenditure and added to the cost of Land.