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Dalili Ltd acquired a new mainframe computer system for Ksh 600, 000 on 1st November 2019. The computer’s estimated useful life is five years. At the end of which it is expected to have a scrap value of 54,500.
If the company’s financial year ends on 31 march, and straight line depreciation is applied on monthly basis, what is the depreciation charge on the computer in the profit and loss account for the year ending 31 march 2021.
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