The intangible assets purchased by the company refer to patents, non-patented technologies, etc. that do not have physical form. When they are sold, what account should be used to calculate the net income obtained?
What account is used to calculate the net income from the sale of intangible assets?
The net income from the sale of intangible assets is included in the asset disposal profit and loss account. Intangible assets refer to identifiable non-monetary assets that have no physical form and are owned or controlled by an enterprise. It mainly includes patent rights, non-patented technologies, trademark rights, copyrights, franchise rights, etc.
Profits and losses from asset disposal are profit and loss accounts, which are used to calculate the gains or losses from the disposal of fixed assets, intangible assets, etc. due to sales, transfers, etc., which affect operating profits. Gains and losses from asset disposals are directly included in the current profit and loss. gains or losses.
How to make accounting entries for the sale of intangible assets?
Debit: bank deposits
Accumulated amortization
Provision for impairment of intangible assets
Credit: intangible assets
Taxes payable - Value-added tax payable - Output tax
Accounting entries for amortization of intangible assets
Debit: Management expenses (for self-use)
Other business costs (when leasing)
Manufacturing overhead/production costs, etc. (specifically used to produce products)
Credit: Accumulated amortization
Intangible assets The amortization period starts from when it is available for use (that is, it reaches its intended use) and ends when it is derecognized (amortization starts in the month when the current month increases, and stops in the month when the current month decreases).
The amortization method of intangible assets selected by the enterprise should be able to reflect the expected consumption pattern of the economic benefits related to the intangible asset. These methods include straight-line method, yield method, etc.