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CMA Intermediate · Financial Accounting · Accounting of Limited Liability Partnership

An LLP fails to file its Statement of Account and Solvency with the Registrar within the prescribed time. Under Section 34(5), the penalty is Rs 100 per day, subject to a maximum for the LLP of:

For failure to file the Statement of Account and Solvency, the LLP is liable to Rs 100 per day, subject to a maximum of Rs 1,00,000 for the LLP, while each designated partner's maximum is Rs 50,000, under Section 34(5).

  1. ARs 50,000
  2. BRs 1,00,000Correct
  3. CRs 5,00,000
  4. DRs 25,000

Explanation

Section 34(5) provides for Rs 100 for each day of failure, capped at Rs 1 lakh for the LLP and Rs 50,000 for each designated partner. Rs 50,000 is the cap for each designated partner, not for the LLP, so it is the key distractor.

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