One LLP was formed in 19-20 with capital of Rs. 20 lakhs as per agreement with 4 partner's contributing 5 lakhs each.
Now the LLP did no business in 19-20 and only 1 partner contributed Rs. 1 lakh in the LLP and rest gave no capital.
How to finalise account's for 19-20.
Record only what has been received: Credit the capital accounts of the partners only for the amounts actually contributed.
Check your agreement: Use the terms in your LLP agreement to determine if the shortfall constitutes a breach.
File accurately: Ensure that the amounts reported in your annual filings (Form 8) match the actual, reconciled books of account.
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