solcitors accounts

Question 1

making payments

Answer 1

if you hold sufficient client money to make a payment you should therefore both entries must be from client money and recorded in the client section

would cr the cash account and debit the client ledger account

Question 2

dishonoured cheque

Answer 2

would need to show that the cheque has been dishonoured so you wld need to reverse the entries when the cheque was recieved

when cheque is recieved on account of costs you credit the client account client colukn and debit the cash account client column

Question 3

money client - held on account of costs

Answer 3

withdrawal from that money would be recorded in the cleint section of the womans ledger account (debit i.e withdraw).

money recieved in payment of a bill is business money and will be oput in the firms business account.

Question 4

interest payable

Answer 4

interest payable ledger used when money held in the general client account

for separate designated accounts - deposit cash account client section - credit client ledger account client on deposit section