SRA accounts rules Flashcards
Which rule states the main aim and what is it?
Rule 1.1: The main aim is to keep client and office money separate
Which rule states that only CLIENT money can be paid into the CLIENT ACCOUNT?
Rule 14
What are the 4 limited circumstances under Rule 14 in which OFFICE money can be paid into the CLIENT ACCOUNT?
To open the account
To maintain the balance at an agreed level
To replace money improperly withdrawn
To make a payment in lieu of interest
If mixed money is paid into the client account, how long do you have to pay the office money over? Under which rule?
14 days. Rule 18.2 (b)
Which Rule concerns payment of mixed money
Rule 18
Which rule explains how to deal with payments from clients?
Rule 17
What account do you use for money received for unpaid disbursements WHERE an invoice has been presented AND it is for professional disbursements (eg counsel)
OFFICE ACCOUNT. Must be paid within 2 working days or transferred to CLIENT ACCOUNT.
Which rule says that a client is entitled to interest on money held for them?
Rule 22
Which rule sets out the record-keeping requirements?
Rule 29
Which rule contains the definitions / interpretation?
Rule 2
Where does it say that CLIENT MONEY must be paid into the CLIENT ACCOUNT with out delay?
2(2)(zzn)
What does Rule 20(6) say?
You cannot spend more money than a client has
What do you do if you have breached the rules
Remedy it promptly upon discovery - Rule 20(5)
What should the office side of the client ledger’s balance be?
ALWAYS DR (client owes firm). CR = breach of rules.
What should the client side of the client ledger’s balance be?
ALWAYS CR (firm owes client).
