How to make accounts when receiving investment?
The specific accounting treatment of general taxpayers accepting investment is as follows:
1. When an enterprise other than a joint stock limited company accepts investment in cash assets:
Debit: bank deposit
Loan: paid-in capital
Capital reserve-capital premium (exceeding its share)
2. When a joint stock limited company accepts investment in cash assets:
Debit: bank deposit
Loan: share capital
Capital reserve-equity premium
3. When an enterprise accepts investment in non-cash assets such as houses, equipment and materials, it shall take the value agreed in the investment contract or agreement as the recorded value of the assets, and the part that exceeds the investor's share in the registered capital of the enterprise shall be recorded as capital reserve. The entries are as follows:
(1) When accepting investment in fixed assets or intangible assets:
Borrow: fixed assets (or intangible assets)
Taxes payable-VAT payable (input tax)
Loan: paid-in capital
Capital reserve-capital premium
Capital stock (when the enterprise is a joint stock limited company)
Capital reserve-equity premium (when the enterprise is a joint stock limited company)
(2) When accepting investment in raw materials:
Borrow: raw materials
Taxes payable-VAT payable (input tax)
Loan: paid-in capital
Capital reserve-capital premium
Capital stock (when the enterprise is a joint stock limited company)
Capital reserve-equity premium (when the enterprise is a joint stock limited company)
What is paid-in capital?
Paid-in capital refers to the capital invested by investors in an enterprise according to its articles of association or contracts and agreements. The proportion of paid-in capital is the main basis for enterprises to distribute profits or dividends to investors. China's "Regulations on the Administration of Enterprise Legal Person Registration" stipulates that unless otherwise stipulated by the state, the paid-in capital of an enterprise shall be consistent with the registered capital.
Accounting entry for decrease of paid-in capital
The enterprise suffered heavy losses.
Borrow: paid-in capital
Commodities: Profit Distribution-Undistributed Profit
Excess funds (indicating that the business scale of the enterprise is declining and the funds cannot be used, which makes the cost of funds rise and causes the waste of funds. )
Borrow: paid-in capital
Loan: bank deposits and other subjects.
Stock repurchase is used to reward employees.
Borrow: paid-in capital
Commodities: Payable to employees.
Sino-foreign joint ventures shall return the shareholders' investment according to the agreement.
Borrow: paid-in capital
Credit: other payables