How to make accounting entries for patent fees paid

1. The enterprise pays patent fees:

Debit: intangible assets - patent name

Credit: bank deposit

2. The enterprise Monthly amortization of patent fees:

Debit: administrative expenses - amortization of intangible assets

Credit: accumulated amortization

3. Carry forward profit for the year :

Debit: Profit for the year

Credit: Management expenses - amortization of intangible assets

The patent fees paid by the enterprise should be passed through the "intangible assets" account And "administrative expenses" account accounting. Intangible assets refer to identifiable non-monetary assets that have no physical form. Amortization of intangible assets is a method of amortizing the original value of intangible assets over its effective period. According to the provisions of the new accounting standards, when amortizing intangible assets, enterprises should use the "accumulated amortization" account for accounting. The actual value of an enterprise's intangible assets is equal to the book value of the intangible assets minus accumulated amortization.