Uniform Charge Methods 

In case of these methods depreciation is charged on uniform basis year after year. Such methods are considered appropriate only for such assets which are uniformly productive. Following three methods fall in this category.

Fixed instalment method. This is also termed as Straight Line Method (SLM).

According to this method, depreciation is charged evenly every year throughout the effective life of the asset The amount of depreciation is calculated as follows.

 Depreciation = Original Cost of the Fixed Asset — Estimated Scrap Value/ Life of tie Asset in Number of Accounting Periods

Depreciation to be charged each year can also be expresscd as a percentage of cost.

Merits. (I) The method is simple to understand and easy to apply.

(ii) The value of the asset can be reduced to zero (or its scrap value) under this method. 

(iii) The method is very suitable particularly in case of those assets which get depreciated more on account of expiry of period e.g., lease-hold properties, patents, etc.

Demerits. (i) The method does not take into account the effective utilisation of the asset. The same amount of depreciatiOn is charged from year to year irrespective of the use of the asset.

(ii) The total charge for use of the asset (i.e., depreciation and rejiairs) goes on increasing from year to year though the asset might have been used uniformly from year to year. For example, in the initial years, the amount spent on repairs is quite normal. It goes on increasing in the latter years. The amount of depreciation remains the same for each year. Thus, each subsequent year is burdened with greater charge for the use of asset on account of increasing cost on repairs.