What accounting subjects does the patent application fee include?

As an intangible asset, patent has great commercial value, and enterprises often need to pay a certain application fee when applying for patent rights. What accounting subjects does the patent application fee include?

Which subject does the patent application fee include?

1. Patents are included in intangible assets accounting:

Borrow: intangible assets

Loans: bank deposits

2. If the patent of the enterprise is not formed, it can be directly included in the management expenses:

Borrow: management fee

Loan: bank deposit or cash on hand.

3. If the patent fee is applied for the research and development of enterprise scientific research projects, the research and development expenditure account can be carried forward to the management expense account:

Borrow: R&D expenditure

Loan: Cash on hand or bank deposit.

Borrow: management expenses-research and development expenses

Loan: R&D expenditure

How to make accounting entries for royalties received?

The patent right belongs to the intangible assets of the enterprise, and the income from the transfer of intangible assets should be included in other business income subjects. The accounting entries are as follows:

Borrow: intangible assets

Loans: other business income