Accounting entries of investment funds received
Accounting treatment of accepting cash assets investment:
Debit: bank deposit (issue price, handling fee and commission)
Loans: paid-in capital (share agreed by both parties of a limited liability company) and share capital (par value of a joint stock limited company).
Capital reserve-capital premium and equity premium (balance inversion)
Accounting treatment of accepting investment in non-cash assets;
Borrow: fixed assets, raw materials and intangible assets (according to the fair value of assets)
Taxes payable-VAT payable (input tax)
Loan: paid-in capital (according to the share agreed by both parties)
Capital reserve-capital premium (balance inversion)
What is paid-in capital?
Paid-in capital refers to the capital actually received by an enterprise from investors and is the source of the total legal capital registered by the enterprise. According to investors, it can be divided into state capital, collective capital, individual capital, enterprise capital, Hong Kong, Macao and Taiwan capital and foreign capital.
The proportion of paid-in capital is the main basis for enterprises to distribute profits or dividends to investors.
When the paid-in capital of an enterprise increases or decreases by more than 20% compared with the original registered capital, it shall apply to the original registration authority for change registration with the certificate of capital use or capital verification.
The "paid-in capital" account belongs to the owner's equity account, and the final credit balance reflects the paid-in capital or total share capital of the enterprise.
What are raw materials?
Raw materials refer to all kinds of raw materials and main materials, auxiliary materials, packaging materials, fuels, etc. After processing and changing in the production process, it constitutes the main entity of products and an important part of enterprise inventory.
The "raw materials" account belongs to the asset account, and the debit balance at the end of the period reflects the planned cost or actual cost of the enterprise's inventory materials. And make detailed accounting according to the storage location (warehouse), category, variety and specification of materials.