1． Foreign investment with fixed assets. When the investor invests externally with fixed assets, the "long-term equity investment" account will be debited with the price agreed upon by both parties, and the "accumulated depreciation" account will be debited with the accumulated depreciation amount. The "fixed assets" account is credited with its original book value. The "Capital Reserve" account is debited or credited with the difference between the net price agreed between the parties and the net book value of the fixed assets.
2. Invest overseas with inventories. When the investor invests externally with inventory, it should debit the "long-term equity investment" account according to the agreed price, credit the "raw materials", "finished goods" and other accounts with its original book value, and debit the difference between the agreed price and the actual cost. Or credit the "Capital Reserve" account. If the inventory is costed according to the plan, the cost difference that should be borne by the delivered inventory must also be allocated through the "Material Cost Variance" account.
3. Invest externally with intangible assets. If the investor invests externally with unaccounted intangible assets (such as land use rights, etc.). Then the "long-term equity investment" account should be debited and the "capital reserve" account should be credited according to the value confirmed after asset appraisal. If an enterprise invests externally with non-patented technology, patent rights and other intangible assets that have been recorded, the value should be recognized based on appraisal. Debit the "Long-term Equity Investment" account. The "intangible assets" account is credited according to the amortized book value of the intangible asset, and the "capital reserve" account is debited or credited according to the difference between the appraisal price and the book value.