Accounting entries for receiving patent subsidies
Debit: bank deposit
Loan: non-operating income
What is a patent?
Patents are generally documents issued by government agencies or regional organizations representing several countries according to their applications. This kind of document records the contents of the invention and creation, and in a certain period of time, it has produced such a legal state that the patented invention and creation can only be implemented by others with the permission of the patentee. In China, there are three kinds of patents: inventions, utility models and designs.
What is non-operating income?
Non-operating income refers to the income that is not directly related to the production and operation process and should be included in the current profit, and is also an integral part of the financial achievements of the enterprise. For example: recover the arrears of transferred employees, confiscate the deposit income of packaging materials, and fine the net income. Non-operating income is accounted for in "profit" or "profit and loss" accounts. In the "income statement" of an enterprise, non-operating income needs to be listed separately. The accounting of non-operating income of enterprises is carried out under the subject of "non-operating income", and detailed accounts can also be set up under this subject according to various incomes.
It mainly includes: debt restructuring income, profit and loss of enterprise merger, disk income, exchange income of non-monetary assets, sale of intangible assets, fine income, accounts payable that cannot be paid due to creditors' reasons, government subsidies, additional return of education fees, donation income, etc.
Borrowing direction of non-operating income
Non-operating income belongs to the category of profit and loss. At the end of this period, the debit indicates decrease, the credit indicates increase, and there is no balance at the end of the period.