books of prime entry

Question 1

Petty cash journal

Answer 1

contains petty cash ledger

Question 2

Cash journal

Answer 2

contains cash ledger - either combined one for office and client or separate cash accounts

Question 3

Client Transfer journal

Answer 3

to comply with 13.3.1
records all transfers of client money from one client to another
doesnt record transfers from client account of office account
Sometimes called Transfer sheet

Question 4

Bills delivered book/file

Answer 4

to comply with 13.8
Lists each bill
Normally will be a copy of each bill

Question 5

Ledgers - Client ledger

Answer 5

contains separate account/ledger for each client or client matter
separate columns for office money and client money 13.1.2 and 13.6 and balance column 13.5

Question 6

Ledgers - Office ledger

Answer 6

contains all other non client accounts/ledgers

eg HMRC, creditors, captial etc

Question 7

Records to be kept by requirement 13

Answer 7

Monthly client account bank recon statement 13.9
Monthly recon of client ledger accounts to client cash account balance 13.9
Both retained for 6 years 13.13
Bank statements - 6 years 13.13
cheques, authorities for client acc withdrawals, accounts report checklist - 2 years 13.14