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How to make accounting entries for shareholders’ in-kind investment

According to the relevant provisions of the Company Law, company shareholders can contribute capital in the following ways: currency and physical objects, intellectual property rights, land use rights and other non-monetary properties that can be valued in currency and can be transferred in accordance with the law, such as equity, etc. . Shareholders are not allowed to contribute capital in the form of labor services, credit, names of natural persons, goodwill, franchise rights, properties set as guarantees, or property that cannot be used as capital contribution according to laws and administrative regulations. When the company receives in-kind investment from shareholders, the entry is,

Debit: raw materials/inventory goods,

Tax payable - value-added tax payable - input tax,

Loan: paid-in capital.