Solicitors Accounts

Question 1

DR

Answer 1

Debit
- decrease liability
- increase asset

DR is listed for an account when money is paid INTO the account or we receive money

Debit the receiver

Question 2

CR

Answer 2

Credit
- increase liability
- decrease asset

CR is listed when money is transferred FROM an account

Credit the giver

Question 3

Double book keeping entry for money paid from an account

Answer 3

CR cash account + DR x (receiving) account

Question 4

Double book keeping entry for money received INTO an account

Answer 4

DR cash account + CR x (paying account)

Question 5

Double book keeping entry for bill sent to client

Answer 5

DR client ledger business account + CR profit cost account

Question 6

Double book keeping entry for client paying a bill

Answer 6

DR cash account + CR client ledger account

Question 7

Double book keeping entry for a solicitor transferring money from a client account to his business account to cover disbursement

Answer 7

1. Withdrawal client account
   CR cash account, client section + DR client ledger account, client section
2. payment to business account
   DR cash account, business section + CR client ledger account, business section