The patent rights purchased by the enterprise belong to the accounting category of intangible assets. If they are leased, the income obtained should be included in other business income accounts. How should accounting entries be made when amortizing?
How to make accounting entries for amortization of rental patent rights?
Entry to collect patent rent:
Debit: bank deposit
Credit: other business income
Patent amortization:
Debit: other business costs
Credit: accumulated amortization
Other business costs refer to other daily operating activities recognized by the enterprise in addition to the main business activities. expenses incurred. Other business costs include the cost of sales materials, depreciation of leased fixed assets, amortization of leased intangible assets, cost or amortization of leased packaging, etc. If the cost model is used to measure investment real estate, the depreciation or amortization provided for the investment real estate will also constitute other business costs.
Accumulated amortization is used to amortize intangible assets. The balance is generally on the credit side, and the credit side registers the accumulated amortization that has been provided. The accumulated amortization account is an asset account and is used to calculate the amortization of intangible assets. Listed under assets on the balance sheet as a deduction from intangible assets. Accumulated amortization only belongs to the adjustment account of intangible assets, and the registration direction is opposite to that of intangible assets.
Accounting entries for purchasing patent rights
Debit: intangible assets
Credit: bank deposits
Intangible assets include patent rights, Non-patented technology, trademark rights, copyrights, land use rights, franchises, etc. Intangible assets refer to identifiable non-monetary assets without physical form owned or controlled by an enterprise. Characteristics of intangible assets: they do not have a physical form; they are identifiable; they are non-monetary long-term assets.