There are various types of intangible assets of enterprises, including trademark rights, patent rights, etc. For such intangible assets, they can be included in the asset disposal profit and loss account when they are sold. How to do the relevant accounting processing?

Accounting entries for the sale of trademark rights

The sale of trademark rights can refer to the accounting entries for the disposal of intangible assets, assuming that the tax amount is not considered:

Debit: Bank Deposits

Accumulated amortization

Provision for impairment of intangible assets

Credit: Intangible assets

Profits and losses from asset disposal

Taxes payable - Value-added tax payable (output tax)

Accounting entries for the purchase of trademark rights

Trademark rights are included in intangible assets.

Debit: intangible assets

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

Debit: bank deposits, etc.

What are intangible assets?

Intangible assets are identifiable non-monetary assets that have no physical form and are owned or controlled by an enterprise. If an asset meets one of the following conditions, it meets the identifiability standard in the definition of intangible assets: it can be separated or divided from the enterprise, and it can also be used for buying, selling, transferring, or granting licenses alone or together with related contracts, assets or liabilities. wait.

Methods for amortization of intangible assets

average method (i.e. straight-line method), total production method, etc.

The amortization method of intangible assets selected by the enterprise should reflect the expected realization method of the economic benefits related to the intangible assets. If the expected realization method cannot be reliably determined, straight-line amortization shall be used.

What are asset disposal gains and losses?

Profits and losses from asset disposal are a newly added accounting account, which are mainly used to calculate the gains or losses from the disposal of fixed assets, intangible assets, etc. due to sales, transfers, etc. Gains and losses on asset disposals affect operating profits. Asset disposal gains and losses are directly included in the gains or losses of the current period.