How to make accounting entries in amortization of rental patent rights?
Items for collecting patent rent:
Debit: bank deposit
Loans: other business income
Amortization of patent right:
Debit: other business costs
Loan: accumulated amortization
Other business expenses refer to the expenses incurred by an enterprise in other daily business activities other than its confirmed main business activities. Other business costs include the cost of selling materials, depreciation of leased fixed assets, amortization of leased intangible assets, cost or amortization of leased packaging materials, etc. If the investment real estate is measured by cost model, the depreciation or amortization of the investment real estate also constitutes other operating costs.
Cumulative amortization is used to amortize intangible assets, and its balance is generally registered with the lender, who has accrued cumulative amortization. Cumulative amortization account is an asset account, which is used to calculate the amortization of intangible assets. Deductions listed as intangible assets in the balance sheet. Cumulative amortization only belongs to the adjustment subject of intangible assets, and the registration direction is opposite to that of intangible assets.
Accounting entries for purchasing patent rights
Borrow: intangible assets
Loans: bank deposits
The contents of intangible assets include patent right, non-patented technology, trademark right, copyright, land use right, franchise right and so on. Intangible assets refer to identifiable non-monetary assets that have no physical form and are owned or controlled by enterprises. Characteristics of intangible assets: no physical form; Having identifiability; It belongs to non-monetary long-term assets.