Transfers between clients Flashcards
1
Q
What is actually happening?
A
No money is moving into or out of the firm’s bank accounts, the same amount is being held so there will not be any entries in the cash accounts. The only change is in who that particular sum of money belongs to. A transfer between clients would be recorded by entries in those two client’s ledgers. Client account debit who’s transferring the money and credit who’s receiving the money
