How to write accounting entries for amortization of intangible assets

Accounting entries for amortization of intangible assets

1. If used by the unit, the entries are as follows:

Debit: administrative expenses

2. If it is sold to external parties as business costs, the entries are as follows:

Debit: Other business costs

Credit: Accumulated amortization Amortization

What are intangible assets?

Intangible assets refer to identifiable non-monetary assets without physical form owned or controlled by an enterprise. They are divided into broad and narrow senses: Intangible assets in a broad sense include monetary funds, financial assets, long-term equity investments, and patents. Rights, trademark rights, etc.; intangible assets in a narrow sense include patent rights, trademark rights, etc.

What is accumulated amortization?

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. Similar to the accumulated depreciation account in fixed assets.

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.