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Pradeep Kumar Sarangi (A/c.asst)     21 April 2024

Quasi Capital Accounting Entries

Dear Experts
What is Quasi Capital and what will be the accounting entries for same which infused by the Owners?
can it will be treated under Unsecured Loans or any other treatments for same.

please suggest,



 4 Replies

T. Kalaiselvan, Advocate (Advocate)     21 April 2024

Quasi equity, also known as quasi capital, is a form of debt that shares some traits with equity. The characteristics include flexible repayment terms or subordinated debt. This means quasi equity it is either unsecured or has lower priority than other debt.

Includes equity-like Instruments and other forms of loans that have the form of equity or equity that has the form of loans. An example is equity with a put agreement, i.e., unlike normal equity, the investor requires return of the equity, for example, in five years at ten per cent interest.

Funds other than paid up capital and retained earnings employed in a business and which will remain in a business as permanent capital is called as quasi capital. 

For example : convertible bonds, interest free loan from friends./relatives

Pradeep Kumar Sarangi (A/c.asst)     21 April 2024

Sir, can you please suggest the journal entries to pass into the ledger account?

T. Kalaiselvan, Advocate (Advocate)     21 April 2024

Certain aspects pertaining to accounting procedures can be clarified from your your accounts officer or your auditor 

Dr. J C Vashista (Advocate )     22 April 2024

Consult your chartered accountant or professor for proper guidance, it is an accounting question paper but not a legal issue for obligation of experts on this platform.

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