Final answer:
The Reducing Balance Method of depreciation creates an unequal burden on the profit and loss account by charging higher depreciation in the earlier years and lower in the latter years. Therefore, the correct option is B.
Step-by-step explanation:
The method of depreciation that suffers from the limitation of unequal burden on the profit and loss account is the Reducing Balance Method. This method involves calculating depreciation as a fixed percentage of the diminishing book value of an asset. This results in a higher depreciation charge in the early years of an asset's life and a decreasing charge in the later years. As a result, the profit and loss account is charged more in the initial years and less in the subsequent years, leading to an unequal burden over the years.
Other methods, such as the Fixed Instalment Method, apply a consistent charge to the profit and loss account as they spread the cost of the asset evenly over its useful life. The Annuity Method and the Depletion Method are also subject to varying impacts on the profit and loss account, but the Reducing Balance Method is the one known specifically for this limitation.