Quasi Capital accounting entry

[Pradeep Sarangi]

What will be the accounting entries for Quasi Capital added by the shareholders into the business ?

would it may apply under unsecured loan or any other treatments for same ?

Please guide !!

Regards

Pradeep

AI Summary

Shareholders Navigate Complex Capital Contributions Through Strategic Financial Instruments and Nuanced Accounting Treatments Shareholders can contribute quasi capital to a business through various financial instruments with different accounting treatments. The entry depends on the specific arrangement: unsecured loans are recorded as liabilities (debit bank, credit loan), hybrid instruments may be split between equity and liability, and loans with specific repayment terms are treated as payable liabilities. The classification hinges on repayment terms, interest, and potential conversion features, requiring careful assessment under applicable accounting standards.