How to deal with the accounting of high-tech enterprises purchasing patent rights?

The accounting treatment of purchasing patent rights is usually included in intangible assets, bank deposits and other subjects for accounting, so what should high-tech enterprises do in the accounting treatment of purchasing patent rights?

Accounting entries of high-tech enterprises purchasing patent rights

Borrow: intangible assets

Tax payable-input tax to be certified

Loans: bank deposits

What is intangible assets?

Intangible assets refer to assets that have no physical form but can bring economic benefits. Social intangible assets usually include patents, non-patented technologies, trademarks, copyrights, concessions and land use rights. Natural intangible assets include natural resources such as natural gas without physical form.

What is a bank deposit?

Bank deposit is the currency deposited in the bank, and it is an integral part of monetary funds. According to the provisions of China's cash management system, every enterprise must open a deposit account with the People's Bank of China or a specialized bank for deposit, withdrawal and transfer settlement. Except for a small amount of cash within the prescribed limit, the monetary funds of the enterprise must be deposited in the bank. Bank deposits of enterprises mainly include: settlement account deposits, letter of credit deposits, foreign deposits, etc. The cashier is responsible for the receipt and payment of bank deposits. Every bank deposit income and expenditure business must prepare accounting vouchers according to the audited original vouchers.

In accounting, bank deposits are assets. The last balance is on the debit side. In accounting entries, debit indicates increase. The lender indicated a decrease.