Company invention patent research and development process expenses

When various R&D expenses occur:

Debit: R&D expenditure-expensed expenditure 2200- 1200= 1000.

R&D Expenditure-Capitalized Expenditure 1200

Loan: raw materials 1000

The salary payable to employees is 500 pounds.

Bank deposit 700

At the end of each month, the expensed expenditure is transferred to the "Management Expense" account (make a summary entry here). Since the capitalized expenditure has not reached the intended purpose, it is unnecessary to carry it forward to the "R&D Expenditure–Capitalized Expenditure" account.

Debit: management fee 1000

Loan: R&D expenditure-expenses 1000.

At the end of the term, when the patented technology achieves its expected purpose:

Debit: intangible assets 1200

Loan: R&D expenditure-capitalized expenditure 1200