When the equity of the subsidiary is transferred, the paid-in capital remains unchanged, but the shareholders change. The equity transaction money is paid directly by the parent company to the original shareholders of the subsidiary company, so an entry should be made:

Borrow: paid-in capital-original shareholders,

Loan: paid-in capital-new shareholders,

The parent company purchases the equity of the subsidiary held by the original shareholder, which is equal to investment:

Borrow: long-term equity investment (actual transaction price),

Loans: bank deposits,

If the original shareholder of the subsidiary is an individual, no entry will be made. If it is a company, the accounting treatment is as follows:

Debit: bank deposit,

Loan: long-term equity investment,

Investment income.