There are generally two ways to obtain trademark rights, namely purchasing trademark rights and registering a trademark. The former is much simpler in process than the latter, so most companies will choose to directly purchase trademark rights to obtain the right to use the trademark. How to make accounting entries when purchasing a trademark?

Accounting entries for the purchase of trademark rights

Debit: intangible assets

Taxes payable - value-added tax payable (input tax)

Loan: bank deposits, etc.

Bank deposits refer to the currency deposited by enterprises in banks and other financial institutions, while cash refers to the currency in stock for daily sporadic payments. Bank deposits are asset accounts, accounting for the company's money deposited in bank settlement accounts. The ending balance generally appears on the debit side and represents an increase in the company's bank deposits.

Under special circumstances, the balance may also appear on the credit side. At this time, it means that the company has unsettled accounts. It needs to be adjusted by preparing a bank balance reconciliation statement. It also needs to be checked to see if it is recorded incorrectly (such as the direction is reversed). , duplicate records of expenditures, etc.).

Accounting entries for leasing trademark rights

Debit: bank deposits

Credit: taxes payable - value-added tax payable (output tax)

The income from leasing trademark rights belongs to the leasing of fixed assets or intangible assets, and the rent collected is recorded in other business income accounts.

Debit: other business income

Credit: bank deposits

What are intangible assets?

Intangible assets refer to identifiable non-monetary assets that have no physical form. Intangible assets can be divided into broad and narrow senses. Intangible assets in a broad sense include monetary funds, financial assets, long-term equity investments, patent rights, trademark rights, etc., because they do not have physical entities, but are expressed as certain legal rights or technologies. However, in accounting, intangible assets are usually understood in a narrow sense, that is, patent rights, trademark rights, etc. are called intangible assets. It belongs to the asset class account. The debit registration increases and the credit registration decreases.