Nature of accounts

because these are assets

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

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.

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.