Double entry book keeping

Question 1

What are the two requirements for an authorised body’s accounting system for client money?

Answer 1

• cash sheet client account
• client ledger account

Question 2

What is a cash sheet client account?

Answer 2

payments in and out of client account

Question 3

What is a client ledger account?

Answer 3

payments in and out of client account for particular client

Question 4

What are the two requirements for an authorised body’s accounting system for client money?

Answer 4

• Cash sheet business account
• Client ledger business account

Question 5

what is the double entry principle?

Answer 5

for every transaction, two entries for same amount
* One in client ledger client account
* One in cash sheet client account

Question 6

What is the rule in 8.3 on reconicliation?

Answer 6

at least every 5 weeks:
* Statement for client account with
* Cash book balance and
* Client ledger total

Question 7

How will it appear on a double entry basis: Client money received and paid into client account

Answer 7

credit in client ledger, debit in cash sheet client account

Question 8

How will it appear on a double entry basis: Client money paid out of Client Account

Answer 8

debit in client ledger, credit in cash sheet client account

Question 9

How will it appear on a double entry basis: non client money received and paid into business account

Answer 9

credit in business ledger, debit in cash sheet business account

Question 10

How will it appear on a double entry basis: non client money paid out of business account

Answer 10

debit in business ledger, credit in cash sheet business account

Question 11

Can cheques received which are payable to the client not in respect of your services be paid into the client account?

Answer 11

No

Question 12

How will it appear on a double entry basis: transfer from client account to business account

Answer 12

debit client ledger, credit cash sheet client account
credit business ledger, debit cash sheet business account

Question 13

How will it appear on a double entry basis: transfer from business account to client account

Answer 13

debit business ledger, credit cash sheet business account
credit client ledger, debit cash sheet client account

Question 14

What change will be made in the cash sheet client account for transfers between clients?

Answer 14

None