30 Nov 2021

LLP capital contribution

Finance feed by:

CA Arjun Dhorajiya
B.com,CA
CA in Practice
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   •    3 Year 7 Month  experience

in a LLP, if a partner contributes capital of Rs. 200,000 as per LLP agreement and after some time he contributes Rs. 8,00,000 additional and form 11 is filed where Rs. 2lacs is shown as contribution . Then which option is better-
1.Show Rs. 8 lac as current capital. If yes then whether any extra complaince is required for the same?
2.Show Rs. 8 lac as Unsecured loan. If yes then whether any extra complaince is required for the same?Also if interest on such loan is not shown, then whether it is okay?

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