Books of Account, Statement of Account & Solvency, Audit (Section 34 & 34A)

## Section 34 — Maintenance of Books of Account, Other Records and Audit

### Sub-section (1) — Books of Account (BOA)

• Proper Books of Account shall be maintained
• On cash basis OR accrual basis
• Following double entry system of accounting
• At the Registered Office of the LLP
• For the prescribed period of time

### Sub-section (2) — Statement of Account & Solvency (SAS)

Every LLP shall, within 6 months from end of FY, prepare a SAS:

• Signed by all Designated Partners
• Filed with Registrar of Companies (RoC) in prescribed manner

### Sub-section (3) — Audit

Accounts of LLP shall be audited as may be prescribed.

Central Government may exempt any class of LLPs from audit.

### Sub-section (4) — Penalty for Contravention

## Section 34A — Accounting & Auditing Standards

Central Government, in consultation with NFRA (National Financial Reporting Authority), may prescribe accounting and auditing standards (as recommended by ICAI) for a class of LLPs.