The Limited Liability Partnership Act, 2008 came into effect on 31st March, 2009 for the reasons as stated above. Being a part of the Indian corporate structure it is organized as follows:
Features of Limited Liability Partnership Act, 2008
1) Like any other Partnership firm, LLP is subject to income tax.
2) It protects individual partners from the joint liability created by another partner’s misconduct or wrongful business decisions.
3) LLP has a separate legal entity which is distinct and separate from its owners unlike a partnership. Partners may come and go but the firm continues to exists due to its perpetual succession like a limited liability company. There is no limit on the maximum number of members as it is not governed by the Indian Partnership Act, 1932. As per the LLP Act, 2008 at least one partner in the LLP should be an Indian Citizen and an Indian National.
4) The authority to control and register LLPs is the Registrar of Companies.
The balance sheet is the last financial statement that is prepared by any organization. This statement helps to ascertain the true financial position of an enterprise at the end of an accounting period
A profit and Loss Account is the second financial statement prepared by an organization. This account is prepared to ascertain the net results of a firm in form of net profit earned or net loss incurred during an accounting period.
Accounting software is an integral part of the computerized accounting system. The accounting software should be selected after considering the level of skill and proficiency of the accounting professionals.
Accounting Reports: When the collected data is processed and manipulated in a useful sense that can be understood by the users without any ambiguity, then it becomes information.
Transaction Processing System (TPS) refers to a computerized system that records, processes, validates, and stores routine transactions that occur in various functional areas of a business on daily basis.