We are 2 partners trying to form an LLP. In Form 1 & 2, we need to mention partners' contribution. Total capital investments comes to around 1 crore 37 lakhs. Both partners together collectivley are contibuting around 37 lakhs out of their own money. The rest is to be availed of as bank loan. When I inquired with a CA friend, he said that contribution may be both equity and debt. But I am still in doubt. Whether contribution in Forms 1 and 2 refer to just the 37 lakhs of partners' margin or the whole capital investments which includes both the partners' margin and debt capital? Please clarify. Thanks in advance.
CAclubindia
