(Answered) Question having purchased a 10-year lease of his premises

Accounting

Question: Having purchased a 10-year lease of his premises for £5,000, Mr. A. Ross asks advice regarding the amortisation of the lease. You are asked to give the annual Amortisation charge under the Annuity method taking interest at 5 % and to prepare a table contrasting the net charge to Profit & Loss Account with the charge under the Straight Line method. Brieñy answer Mr. Ross's further query: "But why should the net charge increase?"

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