CMA Intermediate · Financial Accounting · Accounting of Limited Liability Partnership
Under the LLP Act, 2008, within what period from the end of each financial year must every LLP prepare its Statement of Account and Solvency?
An LLP must prepare its Statement of Account and Solvency within six months from the end of each financial year, as at the last day of that year, and the designated partners must sign it, as laid down in Section 34(2) of the LLP Act, 2008.
- AThree months
- BSix monthsCorrect
- CNine months
- DTwelve months
Explanation
Section 34(2) requires every LLP to prepare the Statement of Account and Solvency as at the last day of the financial year within six months from the end of that year. It must be signed by the designated partners. Three months is not the statutory period.
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