Nature of accounts
Ashish Uniyal (5 Points)
07 January 2017
Why patent / copyright treat as real nature account not personal
Ashish Uniyal (5 Points)
07 January 2017
Mukesh Kumar
(Accounts Manager)
(1466 Points)
Replied 08 January 2017
Agree with above,,,,,,,,,,,, PETENT /COPYRIGHT SHOULB BE TREAT AS A FIXED ASSET IN ACCOUNTS BOOKS AND YOU SHOULD ALSO LESS THEIR VALUE THROUGH CLAIM DEPT 25% EVERY YEAR
Sanket Dandawate
(CA student)
(52 Points)
Replied 11 January 2017
Patents and copyrights gives a long term benefits to the individual or organization. They are not physical but still assets and hence treated as Real A/c.
Manish Khanna
(8 Points)
Replied 11 January 2017
Take a view of the definition of
1.Real Account : All Assets and properties fall under Real account. e.g. Cash, Building etc.
2.Personal Account : All accounts relating to Individuals, Firms, Companies etc.
Patent/ Copyright represents the ownership right of an intellectual property by an entity, and not as a claim against a third party.
Hence, patent should be treated as real not personal account. To be more specific, it is a real account that falls under the category of INTANGIBLE FIXED ASSETS.
It may be noted that this intangible asset can be acquired by third party for a consideration called royalty.
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