Acquisition of water filtration plant.

Difficulty level: Normal.

ABC (Limited) acquired a water filtration plant from XYZ (Limited) having a list price of Rs.585,000 on 1st Jan 20XX. Following are the details related to this acquisition.
  1. Sales tax(Refundable) 17% already included in the list price.
  2. Trade discount allowed @ 2%.
  3. Further 2% two percent cash discount were also allowed if the payment had been made by 31st January.
  4. Transportation and insurance (In-transit) were Rs.3,000 and Rs.800 respectively.
  5. Installation charges were 15000.
  6. Full and final payment were made on 28th Jan 20XX.


a). Determine the cost of water filtration plant that should be capitalised in the books of ABC Limited on 1st Jan 20XX.