How to make entries to recover long term investments

The accounting of long-term investment business is carried out in the "long-term investment" account and its four detailed accounts: "** investment", "bond investment", "other investment" and "accrued interest".

1. Bond investment, when purchasing:

Debit: Long-term investment – bond investment.

Long-term investments – accrued interest.

2. When crediting "bank deposits" for payment:

Debit: Bank deposit.

Credit: Long-term investments – Bond investments.

Long-term investments – accrued interest, investment income.

3. **Investment, when purchasing:

Debit: Long-term investment – **Investment.

Credit: Bank deposit.

See if the fair value of your investor has changed, and if he has increased during the period, for example, if he has made a profit of 1 million, whether your long-term investment is made by the equity method. Yes, borrow: bank deposit if you receive 2 million.

Credit: Long-term equity investment - cost (let's say you are 1 million) 1 million.

Long-term equity investment - profit and loss adjustment (fair value increased by 100,000) 100,000.

Investment income 900,000.

The above is the most restrictive way. If not the equity method. If you don't make a profit, that's right.

When an enterprise recovers its long-term equity investment: 1. The cost method is adopted in accounting: the "bank deposit" and other accounts should be debited according to the actual amount received, the long-term equity investment should be credited according to its book balance, the "dividend receivable" account should be credited according to the cash dividends or profits that have not yet been received, and the "investment income" account should be credited or debited according to the difference.

If an impairment provision has been made, the impairment provision should also be carried forward at the same time.

2. When using the equity method to account for long-term equity investment, in addition to the above provisions, the relevant amount originally credited to the capital reserve should be carried forward, debited or credited to the account of "capital reserve - other capital reserve", and credited or debited to the account of "investment income".

Summary. Hello, glad to answer for you! 1. When an investment enterprise recovers its long-term equity investment, it shall debit the account of "bank deposit" according to the amount actually received, credit the long-term equity investment according to its book balance, credit the account of "dividends receivable" according to the cash dividends or profits that have not yet been received, and credit or debit the account of "investment income" according to the difference.

If an impairment provision has been made, the impairment provision should also be carried forward at the same time. 2. In addition to the above provisions, the relevant amount originally credited to the capital reserve shall be carried forward, and the account of "capital reserve - other capital reserve" shall be debited or credited, and the account of "investment income" shall be credited or debited by the equity method to account for the disposal of long-term equity investment. I hope mine can help you, pay attention to protection when you go out during the epidemic, thank you.

Hello, I have seen your question and am sorting out the answer, please wait a while Hello, happy to answer for you! 1. When an investment enterprise recovers its pre-distressed capital from long-term equity investment, it shall debit the account of "Bank Deposit Wang Xiqing" according to the amount actually received, credit the long-term equity investment according to its book balance, credit the "Dividends Receivable" account according to the cash dividends or profits that have not yet been received, and credit or debit the "Investment Income" account according to the difference. If an impairment provision has been made, the impairment provision should also be carried forward at the same time.

2. In addition to the above provisions, the relevant amount originally credited to the capital reserve shall be carried forward, and the account of "capital reserve - other capital reserve" shall be debited or credited, and the account of "investment income" shall be credited or debited by the equity method to account for the disposal of long-term equity investment. I hope my ability to help you, pay attention to protection when you go out during the epidemic, thank you.

Long-term equity investment.

During the holding period, the recoverable amount is greater than the cost, and no accounting treatment is required. When disposing of a long-term equity investment, the amount of the long-term equity investment is greater than the cost.

In order to hold the shares of the investee for a long time, become a shareholder of the investee, and control or exert significant influence on the investee through the shares held by the investee, or in order to improve and consolidate the relationship, or hold long-term equity investments that are not easy to realize.

1. Deposit: Borrow: Other Monetary Funds - Deposit Investment Funds.

Credit: Bank deposits.

2. Investment: Borrow: short-term investment, Loan: other monetary funds.

3. Receiving: Borrowing: other monetary funds.

Credit: Short-term investment. Investment income.

Accounting entries are realized by filling in accounting vouchers in actual work, which is an important link to ensure the correctness and reliability of accounting records. In accounting, no matter what kind of economic business occurs, it is necessary to determine the accounting entries of the economic business by filling in the accounting vouchers in accordance with the bookkeeping rules before registering the account, so as to correctly record the accounts and check them afterwards. There are two types of accounting entries: simple entries and compound entries.

If the recoverable amount is greater than the book value, there is no need to do accounting treatment.

If the recoverable amount is less than the book value, it is necessary to make an impairment provision for borrowing; Asset impairment losses.

Credit: Provision for impairment of long-term equity investments.

As I said upstairs, I would like to add a small point that once the impairment provision for long-term equity investment is accrued, it cannot be reversed in the subsequent period.

The accounting of long-term investment business is carried out in the "long-term investment" account and its four detailed accounts: "** investment", "bond investment", "other investment" and "accrued interest".

1. Bond investment, when purchasing:

Debit: Long-term investment – bond investment.

Long-term investments – accrued interest.

2. When crediting "bank deposits" for payment:

Debit: Bank deposit.

Credit: Long-term investments – Bond investments.

Long-term investments – accrued interest, investment income.

3. **Investment, when purchasing:

Debit: Long-term investment – **Investment.

Credit: Bank deposit.

When disposing of a long-term equity investment, the difference between the actual price obtained and the carrying amount of the long-term equity investment shall be recognized as investment profit or loss, and the provision for impairment of the long-term equity investment shall be carried forward at the same time.

If there is an amount included in the capital reserve during the holding period, it should be transferred to the investment income account for accounting.

Debit: Bank deposits, etc. (the price actually received).

Long-term equity investment impairment quasi-rubber collapse.

Credit: Long-term equity investment - cost.

Profit and loss adjustment (or debit).

Other equity changes (or debits).

Dividends receivable (not received as drafted).

Investment income (or debit).

At the same time: borrow: capital reserve - other capital reserve.

Credit: Investment income.

or do the opposite).

Scope of long-term equity investment.

1.Long-term equity investment to the extent of controlling influence – equity investment in a subsidiary.

1) Defining conditions for the parent-subsidiary relationship.

There must be an investment relationship between the two;

There must be a controlling relationship between the two, and there must be filial piety.

2) Definition of control.

2.Long-term equity investment to the extent of joint control influence – equity investment by the joint venture in the joint venture.

1) A joint venture is a special form of enterprise, at the beginning of the establishment of the enterprise, the investors agree to jointly control the financial operation policy of the joint venture in the form of a contract.

2) Definition of joint control.

No one party to the joint venture can control the production and operation activities of the joint venture alone;

Decisions involving the basic business activities of a joint venture require the unanimous consent of all parties to the joint venture;

Each joint venture may appoint one of the joint ventures by contract or agreement to manage the day-to-day activities of the joint venture, provided that it exercises management authority within the financial and operational policies agreed upon by the joint ventures.

3.Long-term equity investment to the extent of significant impact - the equity investment of the associate party in the joint venture.

1) When the investor has a significant impact on the investee through investment (i.e., it has the right to participate in the financial and operational policies of the investee but does not reach the degree of joint control or control), the investor is called the investee's associate, and the investee is called the investor's associate.

2) Definition of significant impact.

General standards. Special standards.

How to do accounting entries for the recovery of long-term equity investments? Some basic knowledge of finance is relatively weak, so when dealing with the entries of long-term equity investments, it is often not clear what to do. If you read the accounting entry template introduced in this article and still don't understand the reason why it does this, you should consult a professional accounting teacher through **.

The account of "bank deposits" shall be debited according to the actual amount received, the long-term equity investment shall be credited according to its book balance, the account of "dividends receivable" shall be credited according to the unreceived cash shares or profits, and the account of "investment income" shall be credited or debited according to the difference. If an impairment provision has been made, the provision for missing value should also be carried forward at the same time.

In addition to the above provisions, the relevant amount originally credited to the capital reserve shall be carried forward, and the account of "capital reserve - other capital reserve" shall be debited or credited, and the account of "investment income" shall be credited or debited by the equity method to account for the disposal of long-term equity investment.