Solicitors Accounts

Question 1

Solicitors’ Accounts Rule Apply to (4)

Answer 1

1. Bodies authorised by SRA
2. Licensed bodies
3. Recognised body
4. Sole practitioner

Question 2

Client money (5)

Answer 2

1. Held or Received
2. Regulating to Related Services
3. On behalf of third party
4. As trustee or by appointment
5. Fees and unpaid disbursements

Question 3

Definition for Promptly

Answer 3

Same or Next Working Day

Question 4

Payment is

Answer 4

Credit

Question 5

Receipt is

Answer 5

Debit

Question 6

Rule for Dealing with Payments of Money

Answer 6

Cannot withdraw more than held for client

Question 7

Situations where you do not use cash account (6)

Answer 7

1. Entries on client ledger to show VAT
2. Entries on profit cost accounts
3. Do not use cash account when money is not entering or leaving the bank account
4. Entries always made in business account records
5. Professional Charges
6. HMRC

Question 8

Abatement of Professional Charges (2)

Answer 8

1. Reduce the Cost
2. Reverse the Original Entry to the Extent of Reduction

Question 9

Exceptions to Paid into Client Account Promptly (2)

Answer 9

1. Alternative arrangement in writing
2. Cheque made to third party

Question 10

Options when Dealing with Mixed Money (2)

Answer 10

1. Split the Cheque
2. Deposit and Transfer

Question 11

Held as Agent (2)

Answer 11

1. Belongs to Seller on Exchange
2. Money paid to client bank account and credited to seller account

Question 12

Held as Stakeholder

Answer 12

Held until completion