11 August 2015
A LLP has an authorised contribution of Rs.50,000. Such amount is shown as Fixed Capital in the books.
Now there is a current capital of Rs.30Lakhs. Is this permissible under LLP Act? Also since the total contribution exceeded 25 lakhs is audit also applicable?
12 August 2015
Contribution of the LLP is governed by provisions of the LLP Agreement. If you have shown Rs 50000 as capital in the LLP Agreement, then any amount over and above this can not be termed as Capital.
You can show this amount i.e. Rs 29.5 Lacs as Loan taken from Partners.
If you want to show this amount as capital, you first need to alter terms of LLP Agreement by executing supplement deed and filing this deed with ROC in Form 3.
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