Stox N Tax

New LLP Financials Format – Scheduled Balance Sheet and Profit & Loss Account (Along with Template)

The Ministry of Corporate Affairs has introduced changes in the presentation of financial statements for Limited Liability Partnerships. LLPs are now required to prepare financials in a more structured and scheduled format similar to companies.

This article explains the new LLP Financial Statement format, disclosure requirements, and practical drafting guidance.

Legal Background

LLPs are governed by the Limited Liability Partnership Act, 2008.

Financial statements are filed annually through Form 8 with MCA. Earlier, LLPs followed a basic format of Statement of Account and Solvency. Now, a structured format resembling Schedule based reporting is required to improve transparency.

Applicability

The new format is applicable to:

  • All LLPs required to file Form 8
  • LLPs crossing prescribed turnover or contribution limits
  • LLPs required to get accounts audited

Structure of New LLP Financial Statements

Financial statements must include:

  1. Balance Sheet
  2. Statement of Profit and Loss
  3. Notes to Accounts
  4. Disclosure of Contribution and Partner Details

Scheduled Balance Sheet Format for LLP

Below is the recommended structure for drafting:

A. Partners’ Funds

  1. Partners’ Capital
  2. Reserves and Surplus
  3. Partners’ Current Account

B. Non-Current Liabilities

  1. Long Term Borrowings
  2. Deferred Tax Liabilities
  3. Other Long Term Liabilities

C. Current Liabilities

  1. Trade Payables
  2. Other Current Liabilities
  3. Short Term Provisions

Assets Side

A. Non-Current Assets

  1. Property, Plant and Equipment
  2. Intangible Assets
  3. Long Term Loans and Advances
  4. Deferred Tax Assets

B. Current Assets

  1. Inventories
  2. Trade Receivables
  3. Cash and Bank Balances
  4. Short Term Loans and Advances
  5. Other Current Assets

Scheduled Profit and Loss Account Format for LLP

Income

  1. Revenue from Operations
  2. Other Income

Expenses

  1. Cost of Materials Consumed
  2. Employee Benefit Expenses
  3. Finance Costs
  4. Depreciation and Amortization
  5. Other Expenses

Profit Before Tax

Less: Tax Expense

Profit After Tax

Important Disclosure Requirements

LLPs must disclose:

  • Contribution of each partner
  • Profit sharing ratio
  • Secured and unsecured loans separately
  • Related party transactions
  • Contingent liabilities
  • MSME disclosures if applicable
  • Details of partners’ remuneration

Practical Drafting Tips for Professionals

  1. Maintain proper grouping of accounts in Tally or accounting software.
  2. Prepare schedules separately and attach detailed notes.
  3. Reconcile capital accounts with LLP agreement.
  4. Ensure depreciation as per Income Tax Act and books is properly disclosed.
  5. Verify borrowings with confirmation balances.

Difference Between Old and New Format

Old FormatNew Scheduled Format
Basic summary formatDetailed classification
Limited disclosuresEnhanced disclosures
No structured schedulesProper grouping and schedules

Penalty for Non-Compliance

Non filing or incorrect filing of Form 8 may attract heavy additional fees under MCA rules.

Conclusion

The new LLP financial statement format brings LLP reporting closer to company style structured reporting. Professionals must ensure proper classification, adequate disclosures, and compliance before filing Form 8.

Proper drafting will reduce scrutiny notices and improve financial transparency.

The Official Excel Template if attached below.

LLP Scheduled Balance Sheet & P&L FormatDownload

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