Investment can be direct capital or technology in various ways.
This company
Borrow: long-term equity investment
Loans: bank deposits
Invested company
Debit: bank deposit
Loan: paid-in capital
Other investment accounting of commercial enterprises
I. Accounting for Cash Investment
When investing in other units in RMB, debit "long-term investment-other investments" and credit "bank deposits". The remittance of foreign exchange invested overseas shall be handled after examination and approval according to the examination and approval system.
Two. Investment accounting of tangible assets and intangible assets
When an enterprise invests in physical or intangible assets used by other units, it must re-evaluate the invested assets. Where state-owned assets are used as capital contribution, it shall be assessed by an asset appraisal institution and confirmed by the state-owned assets management department or the competent department of the investor authorized or entrusted by it.
1. belongs to fixed assets investment. After the fixed assets are appraised, the account of "Long-term Investment-Other Investments" is debited according to the appraised amount, the account of "Accumulated Depreciation" is debited according to the accumulated depreciation of fixed assets, the account of "Fixed Assets" is credited according to the original value of fixed assets, and the difference between the appraised value and the net value of fixed assets is debited or credited to the account of "Investment Income".
[Example] A commercial company invested in Company B with an old machine. The original value of the machine 100000 yuan, depreciated by 30000 yuan, and appraised by both parties by 50000 yuan. The accounting entries of this investment are as follows:
Borrow: Long-term investment-50,000 yuan for other investments.
Accumulated depreciation is 30000.
Investment income-other investment loss 20000
Loan: fixed assets-machinery and equipment 100000.
2. Enterprises investing in other units with other physical assets other than fixed assets should also be evaluated. When investing, the account of "long-term investment-other investments" should be debited according to the assessed amount, and the account of "goods in stock", "materials and materials", "packaging materials" or "intangible assets" should be credited according to the book price of the physical object, and the difference between the assessment and the book price should be debited or credited to the account of "investment income". For newly purchased assets or properties, the evaluation is the same as the original price.
Three. Accounting treatment of recovering other investments
When a long-term investment is recovered due, transferred halfway or liquidated, it shall be recorded according to the actually received price, debited to the "bank deposit" or related physical account, credited to the "long-term investment-other investment" account, and the difference between the actually recovered amount and the investment amount shall be credited to the "investment income" account. The recovered physical assets shall be evaluated by both parties.
[Example] A commercial company invested 6,543,800 yuan in Company B, recovered 500,000 yuan in cash and 700,000 yuan in net fixed assets (original value was 6,543,800 yuan, accumulated depreciation was 300,000 yuan), totaling 6,543,800 yuan+0.2 million yuan, an increase of 200,000 yuan over the original investment. The accounting entries at the time of recovery are as follows:
Debit: 500,000 yuan from the bank.
Fixed assets 1000000
Loan: accumulated depreciation is 300,000 yuan.
Long-term investment-other investments 1000000
Investment income-other investment income 200000
How does a company invest in another company? When a company invests in other companies, both parties need to keep accounts, mostly through "long-term equity investment". In addition, before investing in other enterprises, a company needs to make a lot of financial preparations in advance to determine whether the project is worth investing in.