Solicitory accounts

Question 1

What is Stakeholder Money? how should it be recorded?

Answer 1

A deposit held for both buyer and seller.
It only becomes the seller’s property after completion.

How to Record It:
Option 1: Use the seller’s ledger but clearly label it as “stakeholder money”.
:DR Cash (Client Section).
:CR Seller’s Ledger (Label: “Stakeholder Money”).

Option 2: Open a separate joint ledger for buyer and seller.
DR Cash (Client Section).
CR Joint Stakeholder Ledger (Buyer and Seller).