Introduction:
In accounting, the historical cost concept states that assets should be recorded in the books of accounts at their original cost. This means that the value of an asset should be recorded based on the amount of cash or cash equivalent paid to acquire it. In the case of machinery, the historical cost includes the acquisition cost, transportation cost, and installation cost.

Calculation:
To determine the value at which the machinery should be shown in the books of accounts, we need to calculate the historical cost by adding the acquisition cost, transportation cost, and installation cost.

Acquisition cost: Rs. 1,50,000
Transportation cost: Rs. 11,000
Installation cost: Rs. 3,100

Historical cost = Acquisition cost + Transportation cost + Installation cost
= Rs. 1,50,000 + Rs. 11,000 + Rs. 3,100
= Rs. 1,64,100

Therefore, the machinery should be shown in the books of accounts at a value of Rs. 1,64,100.

Explanation:
The historical cost concept is based on the principle of reliability and objectivity. It ensures that the financial statements provide a true and fair view of the financial position of the entity. By recording assets at their original cost, it avoids subjective valuations and potential manipulation of financial information.

The acquisition cost of the machinery includes the purchase price paid to acquire it. This amount represents the cash or cash equivalent outflow from the entity's resources. It is a reliable measure of the value of the asset at the time of acquisition.

The transportation cost incurred to bring the machinery to the company's premises is an essential part of the asset's cost. It is directly related to the acquisition of the machinery and should be included in the historical cost.

Similarly, the installation cost incurred to set up and make the machinery operational is an integral part of the asset's cost. It is necessary to ensure that the machinery is ready for use and should be included in the historical cost.

By including all these costs in the historical cost, the books of accounts accurately reflect the total resources consumed to acquire the machinery. This information is important for decision-making, evaluation of profitability, and determining the value of the asset in subsequent periods.

Conclusion:
The machinery should be shown in the books of accounts at a value of Rs. 1,64,100, which includes the acquisition cost, transportation cost, and installation cost. This follows the historical cost concept, which ensures reliability, objectivity, and transparency in financial reporting.