RPG Ltd. purchased an equipment from PQR Ltd. for Rs. 50,000 on 1^st April, 2005. The freight and cartage of Rs. 2,000 was spent to bring the asset to the factory and Rs. 3,000 was incurred on installing the equipment to make it possible for the intended use. The market price of machinery on 31^st April, 2006 was Rs. 60,000 and the accountant of the company wanted to disclose the machinery at Rs. 60,000 in their financial statements. However, the auditor emphasized that the machinery should be valued at Rs. 55,000 (50,000 + 2,000 + 3,000) according to