TaxTMI 
TaxTMI 
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
Quasi Capital accounting entry
20 Apr 2024 
1 Reply 
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Quasi capital classification determines whether shareholder injections are recorded as liabilities or equity under accounting standards.
Accounting treatment of Quasi Capital depends on contractual features: if an unsecured or subordinated loan with no fixed maturity, record as a liability (Debit Bank; Credit Unsecured/Shareholder Loan). If a loan with specific repayment terms, record as Loan Payable. If the instrument has convertible or equity-like features, classify wholly or partly as equity or as a compound instrument with split liability/equity accounting. Classification should follow repayment terms, subordination, interest regularity, convertibility, and applicable accounting standards. (AI Summary)
Accounting treatment of Quasi Capital depends on contractual features: if an unsecured or subordinated loan with no fixed maturity, record as a liability (Debit Bank; Credit Unsecured/Shareholder Loan). If a loan with specific repayment terms, record as Loan Payable. If the instrument has convertible or equity-like features, classify wholly or partly as equity or as a compound instrument with split liability/equity accounting. Classification should follow repayment terms, subordination, interest regularity, convertibility, and applicable accounting standards. (AI Summary)