Question

Do overhauling and installation charges will be added to machine value while making machinery account

Answer 1

Its

Machinery A/c Dr.

To cash/ Bank a/c.

as going with the simple logic, that whatever expenses you have incurred till the asset is put to use are added in the cost of the asset. They are capital expenditure.

Eg, when you purchases a car what will you tell your friends that the car had cost you? i.e, ex showroom price + tax + etc charges.