Ajay, Vijay and Sanjay have been in partnership for a number of years, sharing profits and losses in the ratio 7:7:4 as a wholesale stationer running business under the name "AVS Traders". On 31st March, 2021, it was found that some frauds were committed by Sanjay during the year 2020-2021. So, it was decided to dissolve the partnership business on 31st March, 2021 when their Balance sheet stood as under: Liabilities Amount (₹) Assets Amount (₹) Capital accounts: Building 1,90,000 Ajay 1,80,000 Inventory 1,30,000 Vijay 1,80,000 3,60,000 Investments 50,000 General Reserve 36,000 Trade Debtors 70,000 Trade Creditors 80,000 Cash & Bank 26,000 Bills payables 30,000 Sanjay's Capital (overdrawn) 40,000 Total 5,06,000 Total 5,06,000 ### Additional Information: **(i)** Following frauds were committed by Sanjay: 1. Investments costing ₹8,000 were sold by Sanjay at ₹11,000 and the funds were transferred to his personal account. This sale was omitted from firm's books. 2. A cheque for ₹7,000 received from trade debtors was not recorded in the books and was misappropriated by Sanjay. **(ii)** A trade creditor agreed to take over investments of the book value of ₹9,000 at ₹13,000. The rest of the trade creditors were paid off at a discount of 10%. **(iii)** Other assets were realized as follows: Inventory ₹1,20,000 Building 110% of book value Investments The rest of the investments were sold at a profit of ₹7,000 Trade Debtors The rest of the trade debtors were realised at a discount of 10% **(iv)** The Bills payables were settled at a discount of, ₹500. **(v)** The expenses of dissolution amounted to ₹8,060. **(vi)** It was found out, that realisation from Sanjay's private assets would be ₹7,000. **You are required to prepare:** 1. Realisation Account 2. Cash & Bank Account 3. Partners' Capital Accounts. *(All workings should form part of your answer)*

Explain the nature of a Limited Liability Partnership. Who can be a designated partner in a Limited Liability Partnership and what are their liabilities?