Double Entry Book-Keeping

Question 1

Client Money recieved

Such as on account of costs

Answer 1

CR client ledge client account
DR Cash Sheet Client Account

Question 2

Client Money Paid Out

Returned to client

Answer 2

DR Client Ledge Client Account
CR Cash Sheet Client Account

Question 3

Non-client Money Recieved

Client pays back firm for paid disbursement

Answer 3

CR Client Ledger Business Account
DR Cash Sheet Business Account

Question 4

Non-Client Money Paid Out

Firm pays disbursement out of their bank account as not enough in client account

Answer 4

DR Client Ledger Business Account
CR Cash Sheet Business Account/Petty Cash

Question 5

Transfer from client account to business account

Answer 5

DR Client Ledger Client Account
CR Cash Sheet Client Account

DR Client Ledger Business Account
CR Cash Sheet Business Account

Question 6

Transfer between two clients within same client account

Answer 6

DR Client Ledger Client Account (for client whose money being removed)
CR Client Ledger Client Account (for client whose money being added)

Question 7

Recieving deposit money by seller’s solicitor then paying as as stakeholder

Answer 7

CR Stakeholder Ledger
DR Cash Sheet Client Account

DR Stakeholder Ledger
CR Client Ledger Client Account

Question 8

Recieving deposit money by seller’s solicitor then paying as as agent

Answer 8

CR Client Ledger Client Account
DR Cash Sheet Client Account

DR Client Ledger Client Account
CR Cash Sheet Client Account

Question 9

Transferring from lender to buyer

Answer 9

CR Client Ledger Client Account (for buyer/lender depending if seaprate client ledger)
DR Cash Sheet Client Account

Then if separate ledge for lender, do inter-ledger transfer between lender and buyer

Question 10

Paying fair interest on client money

Answer 10

CR Interest receivable ledger
DR Cash Sheet Business Account

DR Interest Payable Ledger
CR Cash Sheet Business Account

CR Client Ledger Client Account
DR Cash Sheet Client Account

Question 11

Transfering money from client account to business account to pay bill + VAT

Answer 11

DR Client Ledger Client Account
CR Cash Sheet Client Account

CR Client Ledger Business Account
DR Cash Sheet Business Account

Question 12

Abating/Reducing Bill + VAT

Answer 12

CR Client Ledger Business Account (for amount bill being reduced by)
DR Profit Costs

CR Client Ledger Business Account (for reduction of VAT)
DR VAT Account

Question 13

Paying disbursement + VAT as agent

Answer 13

DR Client Ledger Client/Business Account + VAT
CR Cash Sheet Client/Business Account + VAT

Question 14

Paying disbursement + VAT as principal

Answer 14

DR Client Ledger Business Account (excluding VAT)
CR Cash Sheet Business Account (excluding VAT)

DR VAT Account
CR Cash Sheet Business Account

(After bill issued)
DR Client Ledger Business Account (including VAT)
CR VAT Account (for VAT)