The accounting entries are as follows:
Borrow: raw materials (or goods in stock)
Loan: paid-in capital
If there is VAT, and the invested inventory has increased in value:
Borrow: raw materials (inventory goods? )
Borrow: Taxes payable-VAT payable (input tax)
Borrow: capital reserve?
Loan: paid-in capital
Extended data:
Main accounting treatment of paid-in capital
(1) An enterprise accepts the capital invested by investors, debits bank deposits, other payables, fixed assets, intangible assets, long-term equity investment and other subjects, credits this subject according to its share in registered capital or equity, and credits the capital reserve-capital premium or equity premium subject according to its difference.
(two) the stock dividends distributed in the profit distribution plan approved by the shareholders' meeting shall be debited to the "profit distribution" subject and credited to this subject after going through the capital increase procedures.
Upon the resolution of the shareholders' meeting or similar organization, when the capital reserve is converted into capital, the title of "capital reserve-capital premium or equity premium" shall be debited and credited to this title.
(3) The bondholders of convertible corporate bonds exercise the right to convert their bonds into shares and debit the subject of "bonds payable-convertible corporate bonds (face value and interest adjustment)" according to the balance of convertible corporate bonds.
Debit the account of "capital reserve-other capital reserve" according to the amount of its equity components, credit the account according to the total face value of shares and the number of converted shares, and credit the account of "capital reserve-equity premium" according to the difference. If there is any cash to pay the non-convertible shares, it should also be credited to the subjects such as "bank deposit".
When an enterprise converts the restructured debt into capital, it shall debit "accounts payable" and other subjects according to the book balance of the restructured debt, and enjoy the total face value of the shares of the enterprise because the creditors give up their creditor's rights.
Credit this account, according to the difference between the total fair value of shares and the corresponding paid-in capital or equity, credit or debit the account of "capital reserve-capital premium or equity premium", and credit the account of "non-operating income-debt restructuring profit" according to the difference.
(4) If the equity-settled share-based payment is exchanged for the services provided by employees or other parties, the account of "capital reserve-other capital reserve" shall be debited according to the amount determined by the actual exercise conditions on the exercise date, and the account shall be credited according to the amount that should be included in the paid-in capital or share capital.
Baidu Encyclopedia-Paid-in Capital