1. Double Entry Bookkeeping and the SRA Accounts Rules

Question 1

Debt: which side

Answer 1

Debit: Label for the left-hand side (DR)

Question 2

Credit: which side

Answer 2

Credit: label for the right-hand side (CR)

Question 3

What is entered in the ‘details’ column of the account

Answer 3

Cross-reference of corresponding account where other entry is going, with details of what the transaction relates to

Question 4

Which accounts are ‘ledger accounts’

Answer 4

All except for cash (and petty cash, if it exists)

Question 5

Who do the SRA Accounts rules apply to?

Answer 5

The rules apply to authorised bodies, their managers and employees

• The authorised body’s managers are jointly and severally responsible for compliance with the rules by the authorised body, its managers and employees
• for licensed bodies, the rules only apply to activities regulated by the SRA in accordance with the terms of its license

Question 6

Left hand side entries (1-4)

Answer 6

1. Expense Incurred
2. Asset Acquired / increased
3. Liability reduced
4. Cash Gained

Question 7

Right hand side entries (1-4)

Answer 7

1. Income Earned
2. Asset disposed of / reduced
3. Liability increased
4. Cash Paid