According to the equity transfer agreement, the accounting entries are as follows:

Borrow: paid-in capital-original shareholders

Loan: paid-in capital-new shareholders

Through the company account, when the new shareholder pays the money,

Debit: bank deposit (cash on hand)

Loan: other payables-collection of equity transfer funds

Pay original shareholders

Debit: other payables-collection of equity transfer funds

Loan: bank deposit (cash on hand)

Equity is the company's property right, representing the company's residual control right and residual claim right. Equity includes: control right, ownership right, dividend right, inheritance right, value-added right, transfer right and so on. At present, the founders (major shareholders) of most unlisted companies in China have control over the company. Equity is the most important right of a company, and there is no one.

The process of equity transfer

1. Where the equity is transferred to a third party other than the shareholders, the shareholders who transfer the equity shall apply to the board of directors of the company, and the board of directors shall submit it to the shareholders' meeting for discussion and voting; The equity transfer between shareholders does not need the approval of the general meeting of shareholders, as long as the company and other shareholders are notified.

2. Both parties sign an equity transfer agreement, specifying the amount, price, procedures, rights and obligations of both parties, so as to make it an effective legal document for binding and regulating the behavior of both parties. The equity transfer contract shall conform to the general provisions of the contract law.

3. In the process of equity transfer, in order to prevent the loss of state-owned assets, according to the provisions of Article 3 of the Measures for the Evaluation of State-owned Assets issued by the State Council, the auction, transfer, merger and sale of state-owned assets shall be evaluated. Equity transfer price should generally not be lower than the value of the net assets contained in the equity.

4. For the equity transfer of Chinese-foreign equity joint ventures and Chinese-foreign cooperative joint ventures co., Ltd., according to the provisions of the current Law on Chinese-foreign Equity Joint Ventures and the Law on Chinese-foreign Cooperative Joint Ventures, the transfer formalities can only be handled with the consent of the superior competent department of the Chinese shareholder and the approval of the original examination and approval authority.

5. Take back the original shareholder's capital contribution certificate, issue it to the new shareholder, change the registered company's register of shareholders, cancel the original register of shareholders, record the new shareholder's name, domicile and transferred capital contribution in the register of shareholders, and amend the company's articles of association accordingly. However, the capital contribution certificate, as a proof that the company has fulfilled its capital contribution obligations and enjoyed equity, is only a proof that shareholders oppose the company, which is not enough to produce publicity effect.

6. Go through the newly revised articles of association, shareholders and their capital contributions registration with the administrative department for industry and commerce. At this point, the legal procedures for the share transfer of the limited liability company have been completed.

The following is a small series of "How to deal with equity transfer accounting of small and micro enterprises?" Do you understand this question after learning it? Is there anything unclear? If so, please contact us again, and our teacher will definitely guide you. Goodbye.