if a CO injects cash in a JV owned by the same owners,balance classified as liability or equity in the JV

Question

if a related party injects cash in a Joint Venture owned by the same owners of the Related Party,balance classified as liability or equity in the JV books? and what is the criteria?

Answer 1

Well this depends on upon the nature of the transaction. If the related party has injected cash as a loan, it shall be reflected as a liability. However, if the JV has issued equity shares against the receipt of cash, the amount shall be classified as equity in the books of JV.