The specific entries are as follows:

Debit: bank deposits (fixed assets, intangible assets)

Credit: paid-in capital - shareholders

Enterprises accept capital invested by investors and debit "bank deposits", "other payables", "fixed assets", "intangible assets", "long-term equity investment" and other items.

According to its share in the registered capital or share capital, this account will be credited, and the difference will be credited to the "Capital Reserve - Capital Premium or Equity Premium" account.

Extended information:

The paid-in capital of general enterprises should be calculated according to the following regulations:

1. The capital invested by investors in cash should be calculated based on the actual receipt Or the amount deposited in the bank where the enterprise has an account is recorded as paid-in capital. The excess of the amount actually received or deposited into the enterprise's bank account in excess of its share of the enterprise's registered capital shall be included in the capital reserve.

2. The capital invested by investors in the form of non-cash assets shall be recorded as paid-in capital according to the value confirmed by the investing parties. Intangible assets received from investors for the initial issuance of stocks shall be recorded at the book value of the intangible assets at the investor.

3. If the foreign currency invested by the investor does not have an agreed exchange rate in the contract, it will be converted according to the exchange rate on the day when the investment amount is received; if the exchange rate is agreed in the contract, it will be converted according to the exchange rate agreed in the contract. The conversion difference arising from different exchange rates will , treated as capital reserve.

4. If a Sino-foreign cooperative joint venture returns investors’ investment during the cooperation period in accordance with relevant laws and regulations, the returned investment shall be separately accounted for and included in the balance sheet as paid-in capital. Subtractions are reflected separately.

The enterprise shall confirm the invested capital based on the actual monetary, physical and intangible assets received in accordance with the enterprise's articles of association, contract, agreement or relevant regulations. The establishment of a company must be subject to capital verification by a Chinese certified public accountant.

(1) For monetary investments, confirmation and verification are mainly based on receipt receipts. For foreign exchange investments made by foreign investors, certificates from the foreign exchange administration authorities of the place where the profits originate should be obtained.

(2) For capital contributions based on physical assets such as buildings, machinery and equipment, materials and supplies, confirmation should be based on various relevant vouchers, and physical inventory and on-site investigation should be conducted to verify the relevant invest. Houses and buildings should have property rights certificates.

(3) For capital contributions based on intangible assets such as patent rights, proprietary technologies, trademark rights, land use rights, etc., all relevant vouchers and documents should be used as the basis for confirmation and verification. The industrial property rights and know-how invested by the foreign joint venturer must meet the prescribed conditions.

Baidu Encyclopedia-Paid-in Capital