Accounting entries for foreign investment in raw materials

Borrow: Long-term equity investment.

Credit: raw materials.

Credit: Taxes payable.

VAT payable (output tax.

Credit: Other business income.

credit variance) or.

Borrow: Long-term equity investment.

Debit: Other operating expenses (debit variance).

Credit: raw materials.

Credit: Tax Payable – VAT Payable (Output Tax).

Borrow: Long-term equity investment.

Credit: Other business income (fair value).

Tax Payable - VAT Payable (Output Tax).

Borrow: Other operating costs.

Credit: raw materials.

Borrow: long-term equity investment 7 605

Credit: Other operating income 6 500

Credit: Tax Payable - VAT Payable (Output Tax) 1 105 Borrow: Other Operating Costs 7 000

Credit: Raw materials 7 000

Foreign investment in raw materials shall be regarded as sales and output tax shall be paid.

At the same time, the flow of raw materials to the outside of the enterprise should be recognized as the corresponding revenue and cost.

1 Borrow: Long-term equity investment 8105

Credit: Raw materials 7 000

Tax Payable - VAT Payable (Input VAT Transferred Out) 1105 is valued at historical cost and transferred out at book value.

Accounting treatment of the investee enterprise:

Borrow: raw materials 6500

Tax Payable - VAT Payable (Input Tax) 1105

Credit: Paid-in capital 7000 (recorded at the contract price, assuming that the two enterprises require 7000 yuan to buy shares) Other business income 605 (bear the difference, if it is reduced, take "other business costs") 2 Borrow: fixed assets 10700

Tax Payable - VAT Payable (Input Tax) 1700

Credit: Bank deposit 12400

At present, the value-added tax of fixed assets can be deducted, and other expenses, such as transportation costs and packaging costs, can be credited to the cost of fixed assets.

Borrow: Long-term equity investment.

Credit: raw materials.

Tax Payable – VAT payable (output tax).

Other business income (credit variance).

Or. Borrow: Long-term equity investment.

Other operating expenses (debit variance).

Credit: raw materials.

Tax Payable – VAT payable (output tax).

Borrow: long-term equity investment 7 605

Inventory decline provision 500

Credit: Raw materials 7 000

Tax payable – VAT payable (output tax) 1105

Accounting entries for foreign investment:

Borrow: Long-term equity investment.

Credit: Other business income (fair value).

Tax Payable - VAT Payable (Output Tax).

Borrow: Other operating costs.

Credit: raw materials.

Borrow: Long-term Equity Investment Loan: Raw Material Loan: Tax Payable VAT Payable (Input Tax Transferred Out).

Borrow: Long-term equity investment.

Credit: raw materials.

Credit: Tax Payable – VAT Payable (Output Tax).

Credit: Other business income (credit variance).

Or. Borrow: Long-term equity investment.

Debit: Other operating expenses (debit variance).

Credit: raw materials.

Credit: Tax Payable – VAT Payable (Output Tax).

In the company's production and operation activities, the way of investment can be described as various, when we encounter the use of raw materials to invest abroad, how should we make accounting entries?

Borrow: Long-term stocks are carefully invested in the right to be upgraded.

Credit: Other business income.

Tax Payable - VAT Payable (Output Tax).

Borrow: Other operating costs.

Credit: raw materials.

Raw materials refer to all kinds of raw materials, main materials and purchased semi-finished products that are processed by an enterprise in the production process to change their form or nature and constitute the main entity of the product, as well as auxiliary materials that do not constitute the entity of the product but contribute to the formation of the product. Raw materials include raw materials and main materials, auxiliary materials, purchased semi-finished products (purchased parts), repair spare parts (spare parts), packaging materials, fuel, etc.

Foreign investment refers to the investment made by an enterprise in the form of purchasing or bonds or in the form of cash, physical assets, intangible assets, etc. Its purpose is to obtain investment returns, diversify business risks, strengthen inter-enterprise alliances, and control or influence other enterprises.

Long-term equity investment refers to the acquisition of shares of the investee through investment. An enterprise's equity investment in other entities is usually regarded as long-term holding, and through equity investment to achieve control over the investee, or exert significant influence on the investee, or to establish a close relationship with the investee, so as to diversify the operational risk.

Other business income refers to the inflow of economic benefits formed through daily activities such as the sale of goods, the provision of labor income, and the transfer of the right to use assets, other than the main business income of the enterprise.

Other operating costs refer to the expenses incurred by the enterprise in daily business activities other than the main business activities. Other operating costs include the cost of materials sold, the depreciation of leased fixed assets, the amortization of leased intangible assets, the cost or amortization of leased packaging, etc.

Accounting entries for foreign investment:

Borrow: Long-term equity investment.

Credit: Other business income (fair value).

Tax Payable - VAT Payable (Output Tax).

Borrow: Other operating costs.

Credit: raw materials.

Borrow: Long-term Equity Investment, Credit: Other Business Income (Fair Value), Tax Payable - VAT Payable (Output Tax), Jiandong Bend.

Borrow: other business costs, credit: raw materials, units or individual industrial and commercial households The following behaviors are regarded as sales of goods:

1) Delivery of goods to other units or individuals for consignment sales, 2) sales of consignment goods, 3) Taxpayers who have two or more institutions and implement unified accounting, transfer goods from one institution to other institutions for sale, except where the relevant institutions are located in the same county (city), 4) Use self-produced or commissioned processing of goods for non-value-added tax taxable items, 5) Use of self-produced or commissioned processing of goods for collective welfare or personal consumption, 6) Use self-produced, commissioned processing or purchased goods as investment, Provide to other units or individual industrial and commercial households, 7) distribute self-produced, commissioned processing or purchased goods to shareholders or investors, and 8) give self-produced, commissioned processing or purchased goods to other units or individuals free of charge. The following cases are deemed to be the sale of services, intangible assets or immovable property:

1) Units or individually-owned businesses provide services to other units or individuals free of charge, except where they are used for public welfare undertakings or are targeted at the public.

2) Units or individuals transfer intangible assets or immovable property to other units or individuals free of charge, except where they are used for public welfare or for the public.

3) Other circumstances stipulated by the Ministry of Finance and the State Administration of Taxation.

Basis: Notice of the Ministry of Finance and the State Administration of Taxation on Comprehensively Promoting the Pilot Program of Replacing Business Tax with Value-Added Tax (CS 2016 No. 36), and the Detailed Rules for the Implementation of the Provisional Provisions of the People's Republic of China on Value-Added Tax (Decree No. 50 of the Ministry of Finance and the State Administration of Taxation).

Accounting entries for foreign investment:

Borrow: Long-term equity investment.

Credit: Other business income (fair value).

Tax Payable - VAT Payable (Output Tax).

Borrow: Other business imitation costs.

Credit: raw materials.