How to write accounting entries after receiving patent investment?

When an enterprise receives patent investment in the course of operation, it is generally included in intangible assets account and paid-in capital account. How to make relevant accounting entries?

Receiving accounting entries of patent investment

Borrow: intangible assets (record the value agreed in the contract or agreement)

Taxes payable-VAT payable (input tax)

Loan: paid-in capital or equity.

Capital reserve-capital (equity) premium

Accounting entries for 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)

What is intangible assets?

Intangible assets refer to identifiable non-monetary assets owned or controlled by enterprises without physical form, which are divided into broad sense and narrow sense: intangible assets in broad sense include monetary funds, financial assets, long-term equity investment, patent rights, trademark rights and so on. In a narrow sense, intangible assets are patent rights, trademark rights and so on.

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 mode of contribution can be monetary or non-monetary. Non-monetary investment shall meet the following requirements: it can be valued in currency; Can be transferred according to law (except as otherwise provided by law). A company limited by shares uses an equity account, and enterprises other than a company limited by shares use a paid-in capital account.

What is capital reserve?

Capital reserve refers to the capital invested by investors or others, which belongs to investors and the investment exceeds the statutory capital.