Cut in capital equipment price

The cost of an item of property, plant and equipment is the cash price equivalent at the recognition date. So cost - discount in price = capitalised value.

Next, because we have paid upfront the cost of machinery without discount, credit 1% to profit and loss as discount received.

Finally, if you did not pay for the machinery yet, make an error entry and reduce 1% from creditors account. 

As 10 standard covers this. getdocument (mca.gov.in)

AS 10, para 9.1

"The cost of a fixed asset may undergo changes subsequent to its acquisition or construction on account of  exchange fluctuations, price adjustments, changes in duties or similar factors."

This could be a price adjustment, which will lead to a reduction in capitalised value.

It is price adjustments subsequently.