Compu Ltd purchased an asset worth 25,000. Useful life=10 years Residual value=1,000 Accounts of the company was closed on 31st December every year. Compu Ltd follows straight line depreciation method...

Compu Ltd purchased an asset worth 25,000.

Useful life=10 years

Residual value=1,000

Accounts of the company was closed on 31st December every year. Compu Ltd follows straight line depreciation method annually.

Find out rate of depreciation and provide journal entries for the first 2 years.