Accounts and Records

Question 1

What are the accounts that a firm would generally have?

Answer 1

• Client Trust Account
• Office or Operations Account
• Partnership Account *
• Capital Account

Question 2

What items must accounts records be maintained for?

Answer 2

• each client on whose behalf money is handled
• each person or firm with whom the attorney or firm conducts business
• each source of income and type of expenditure
• each type of asset and liability
• each partners drawings and capital contributions

Question 3

What are the Rules dealing with Accounts and Records?

Answer 3

Rules 82 - 83

Question 4

True or False.

The Contractual relationship of attorney and client is also subject to a number of equitable principles such as the duty to account, the presumption of undue influence, and the remedy of unjust enrichment.

Question 5

What are the best practices in relation to Accounts and Records?

Answer 5

• The separation of client monies from that of the attorney or firm
• The proper operation of bank accounts
• The maintenance and preservation of records regarding the handling of client’s monies and property
• the accounting for interest
• the investigation of a practice by the GLC if prima facie evidence of a complaint exists

Question 6

what monies MUST be deposited to the client’s trust account?

Answer 6

• Money that belongs wholly to the clients including interest earned on accounts maintained for designated clients
• Money that belongs partially to client/partially to an attorney and is not practicable to split the payment; attorneys portion to be withdrawn promptly
• Money advanced for fees and services not yet rendered or for disbursements not yet made