Trademark rights are exclusive rights applied by the trademark owner to the National Trademark Office. They are intangible assets. For enterprises to purchase trademark rights, they can be included in the accounting of intangible assets. How to deal with the relevant accounts?

Accounting entries for the purchase of trademark rights

Trademark rights are included in intangible assets

Debit: intangible assets

Taxes payable ——VAT payable (input tax)

Credit: 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.

An asset meets the identifiability standard in the definition of intangible assets if it meets one of the following conditions: 1. It can be separated or divided from the enterprise, and can also be used alone or together with related contracts, assets or liabilities. In buying, selling, transferring, granting licenses, etc. 2. Derived from contractual rights or other legal rights, regardless of whether these rights can be transferred or separated from the enterprise or other rights and obligations. At the same time, intangible assets must meet the following conditions before they can be recognized: (1) The economic benefits related to the intangible assets are likely to flow into the enterprise; (2) The cost of the intangible assets can be measured reliably. In addition, general intangible assets include patent rights, non-patented technologies, trademark rights, copyrights and other rights.

What are the taxes payable?

Taxes payable refer to various taxes and fees that should be paid by an enterprise based on the operating income and profits achieved within a certain period of time, and in accordance with the current tax laws and using certain tax calculation methods. . Including: value-added tax, consumption tax, resource tax, corporate income tax, land value-added tax, and stamp duty. The credit balance at the end of this account reflects the taxes that the enterprise has not yet paid; the debit balance at the end of the period reflects the taxes that the enterprise has overpaid or has not yet deducted.