How to write the accounting entry of selling intangible assets?

Intangible assets obtained by enterprises generally refer to patent rights, trademark rights, copyright, etc. For the sale of intangible assets, you can set up an intangible asset impairment reserve account and an intangible asset account for related accounting. How to make relevant accounting entries?

How to make accounting entries when selling intangible assets?

Debit: bank deposit

Intangible assets impairment reserve

accumulated amortization

Profit and loss on disposal of assets (loan balance)

Loan: intangible assets

Taxes payable-VAT payable (output tax) (if involved)

Profit and loss on asset disposal (loan difference)

The content of intangible assets accounting is the accounting of intangible assets acquired, transferred, invested and amortized by commercial banks. Intangible assets refer to non-monetary assets without physical form, including patents, trademarks, copyrights, non-patented technologies, lease rights, land use rights, goodwill, self-designed and appraised scientific research achievements, software systems, etc.

What is the difference between intangible assets and fixed assets?

First, their physical forms are different.

Intangible assets have no physical form, while fixed assets have physical form.

Second, the accounting methods are different:

Intangible assets with useful life are amortized by the straight-line method; If it has no service life, it will be tested for impairment at the end of the period and will not be amortized; Amortization and impairment test methods are mutually exclusive.

Fixed assets are depreciated by the straight-line method according to the years after the estimated net salvage value, and the impairment test is carried out at the same time. For fixed assets that meet the impairment provision, depreciation should be recalculated after the impairment provision is withdrawn. Depreciation and impairment tests are conducted simultaneously.

Third, the tax treatment is different:

Intangible assets tax law requires 10 amortization before income tax.

The fixed assets tax law requires depreciation according to the number of years specified in the asset category.

Accounting entries for amortization of intangible assets

Borrow: management fee (for personal use)

Other business costs (when leasing)

Manufacturing cost/production cost, etc. (specially used to produce products)

Loan: accumulated amortization