Registration Fees Journal Entry

Registration Fees Definition And Meaning

Registration fees is the fees which is paid to the registrar of the office for starting a new business or starting a new product / brand or service such as starting a real state business or starting a property advisory service. When the company purchased new assets such as office buildings, vehicles, furniture, etc., then the registration fees is also paid for acquiring the ownership of these assets.

The journal entry to record registration fees is shown below:

                                     Registration Fees Expense a/c    XXX

                                                                                    Cash a/c   XXX

                                                  (Registration Fees Paid for the Period)

Registration Fees is an Expense which is recorded in the Income Statement.

Registration Fees Accrual / Outstanding / Payable Journal Entry

If registration is not paid for the period, although, it is incurred, then following adjusting journal entry is recorded according to Accrual Basis of Accounting as shown below:

                                           Registration Fees a/c  XXX


                                                                           Accrued Registration Fees a/c   XXX


                                  (Registration Fees Payable for the Period)

At the end of the period, when it is actually paid, then the above entry is reversed.

What Type Of Expense Is Registration Fee?

It is a Temporary or Nominal Account as it is closed to Income Summary Account at the end of the accounting period.

Example: What’s The Journal Entry When A Company Registration Fee Has Been Paid In Order To Start Up A Brand New Company?

                                 Registration Fee Expense a/c  XXX

                                                                 Cash a/c / Bank a/c  XXX

          (Registration Fee Paid For Cash Or By Check / Cheque To Start Up A Brand New Company )