(a) The water plant accounts provided herein are generally the same as those contained in the prior system of accounts except for some changes in classification, regrouping, and rearrangement of certain accounts. Except for these changes, the balances in the various plant accounts, as determined under the prior system of accounts, should be carried forward. Any remaining balance of plant which has not yet been classified, pursuant to the requirements of the prior system, shall be classified in accordance with the following instructions.

(b) The cost to the utility of its unclassified plant shall be ascertained by analysis of the utility's records. Adjustments shall not be made to record in utility plant accounts amounts previously charged to operating expenses or to income deductions in accordance with the uniform system of accounts in effect at the time or in accordance with the discretion of management as exercised under a uniform system of accounts, or under accounting practices previously followed.

(c) The detailed water plant accounts (301 to 399, inclusive) shall be stated on the basis of cost to the utility, after giving effect to any amounts of contributions in aid of construction applicable to the property, of plant constructed by it and the original cost, estimated if not known, of plant acquired as an operating unit or system. The difference between the original cost, as above, and the cost to the utility of water plant after giving effect to any accumulated provision for depreciation or amortization, shall be recorded in account 114, Water Plant Acquisition Adjustments. The original cost of water plant shall be determined by analysis of the utility's records or those of predecessor or vendor companies with respect to water plant previously acquired as operating units or systems and the difference between the original cost so determined, less accumulated provisions for depreciation and amortization and the cost to the utility, with necessary adjustments for retirements from date of acquisition, shall be entered in account 114, Water Plant Acquisition Adjustments. Any difference between the cost of water plant and its book cost, when not properly includible in other accounts, shall be recorded in account 116, Other Water Plant Adjustments.