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CMA Intermediate · Financial Accounting · Accounting of Limited Liability Partnership

An LLP fails to maintain proper books of account as required by Section 34(1). Under Section 34(6), the fine on every designated partner shall be:

For failure to maintain books of account, prepare the Statement of Account and Solvency, or get accounts audited, every designated partner is punishable with fine of at least Rs 10,000 which may extend to Rs 1,00,000 under Section 34(6).

  1. ANot less than Rs 25,000 but up to Rs 5,00,000
  2. BNot less than Rs 10,000 but up to Rs 1,00,000Correct
  3. CRs 100 per day up to Rs 50,000
  4. DNot less than Rs 50,000 but up to Rs 5,00,000

Explanation

Section 34(6) covers default under sub-sections (1), (2) and (4). The LLP is fined Rs 25,000 to Rs 5,00,000, and each designated partner Rs 10,000 to Rs 1,00,000. The first option is the LLP's fine, so it is wrong here. The per-day penalty applies to late filing under sub-section (3).

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