X and Y partners of a ZK LLP undertakes ₹ 2,50,000/- each in the total contribution of ₹ 5,00,000 of the firm. X transferred the amount of ₹ 2,75,000/- in ZK LLP's bank account as the contribution. Referring the relevant

As per the provisions of Section 33 of Limited Liability Partnership Act, 2008, the obligation of a partner to contribute money or other property or other benefit or to perform services for a limited liability partnership shall be as per the limited liability partnership agreement. The contribution to the capital of LLP by each partner shall be as per the subscriber sheet being filed by the Company with the Registrar of Companies at the time of its Incorporation and it shall be mentioned in the LLP agreement filled with the Registrar of Companies. If a partner contributes in excess of the obligation undertaken by him at the time of LLP incorporation then there are three ways to treat the excess amount: Option-1: The LLP shall refund the excess amount to the partner as soon as possible. Option-2: File Form 3 and increase the total contribution of the firm within 30 days of its receipt. Option-3: If option 1 and 2 has not been exercised, then excess amount shall be treated as loan from partner and such partner shall rank pari-passu to any other creditor of LLP. X contributed ₹ 2,75,000/- instead of ₹ 2,50,000/- in the LLP and hence ₹ 25,000/- will be treated as extra contribution paid by him in the LLP. The excess contribution will be treated in any of the three options mentioned above.