100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Summary BPP Solicitor's Accounts - FULL CHEAT SHEET - Exam-Friendly - High Distinction £12.49
Add to cart

Summary

Summary BPP Solicitor's Accounts - FULL CHEAT SHEET - Exam-Friendly - High Distinction

 251 views  12 purchases

All the possible entries you'll need for the BPP Solicitors' Accounts Exam.

Preview 2 out of 6  pages

  • June 28, 2022
  • 6
  • 2021/2022
  • Summary
All documents for this subject (3)
avatar-seller
hafsah00
Solicitors’ Accounts Entry Breakdown

General Entries

Pay money into the client account CR client ledger: [client name] [amount]
DR client cash [amount]
Pay money out of the client account DR client ledger: [client name] [amount]
(e.g. for disbursements) CR client cash
Record a bill of costs DR office ledger: [client name] [amount]
CR profit costs [amount]
Transfer money from the firm’s client account to the Transaction 1
firm’s office account (e.g. to settle a bill of costs) DR client ledger: [client name] [amount]
CR client cash [amount]
Transaction 2
CR office ledger: [client name] [amount]
DR office cash [amount]
Pay disbursements out of the office account DR office ledger: [client name] [amount]
CR office cash [amount]
Paying out of petty cash DR office ledger: [client name] [amount]
CR petty cash [amount]

Property Transactions

Receipt of deposit from buyer client pending CR client ledger: [client name] [amount]
exchange DR client cash [amount]
Paying of deposit from buyer client to seller’s DR client ledger: [client name] [amount]
solicitors DR client cash [amount]
If the seller’s solicitor is acting as stakeholder
(holding deposit on trust)
Receipt of deposit at exchange of contracts CR client ledger: stakeholder [amount]
DR client cash [amount]

Record transfer of deposit at completion DR client ledger: stakeholder [amount]
CR client ledger: [seller client name] [amount]
If the solicitor is acting as agent
Receipt of deposit cheque following exchange CR client ledger: [seller client name] [amount]
DR client cash [amount]

Payment of deposit cheque to seller client DR client ledger: [seller client name] [amount]
CR client cash [amount]
Record mortgage advance under method 1 (where CR client ledger: [buyer client name] [amount]
there isn’t a separate ledger for the lender) DR client cash [amount]
Record mortgage advance under method 2 (where CR client ledger: [lender name] [amount]
there is a separate ledger for the lender) DR client cash [amount]

On completion, transfer the funds from the lender DR client ledger: [lender name] [amount]
client to the buyer client CR client ledger: [buyer client name] [amount]
Record costs charged to a bank under method 1 DR office ledger: [client name] [amount]
CR profit costs [amount]
Record costs charged to a bank under method 2 Transaction 1- record profit costs in the usual way
DR office ledger: [client name] [amount]
CR profit costs [amount]
Transaction 2- transfer costs from the lender to
client to show client has to pay
DR office ledger: [buyer client name] [amount]
CR office ledger: [lender client name] [amount]

, Transaction 3- transfer money from client ledger to
office ledger to pay both invoices
DR client ledger: [buyer client name] [amount]
CR client cash [amount]
DR office ledger: [buyer client name] [amount]
DR office cash [amount]
Mortgage redemption under method 1 DR client ledger: [seller client name] [amount]
CR client cash [amount]
Mortgage redemption under method 2 Transaction 1- client to lender transfer of
redemption figure
DR client ledger: [seller client name] [amount]
CR client ledger: [bank client name] [amount]
Transaction 2- record payment to lender client
DR client ledger: [bank client name] [amount]
CR client cash [amount]

Accounting for VAT, abatement of costs and bad debts

Accounting for VAT on profit costs Transaction 1- record the amount of profit costs
DR office ledger: [client name] [amount exc VAT]
CR profit costs [amount exc VAT]
Transaction 2- record the amount of VAT
DR office ledger: [client name] [amount of VAT]
CR VAT account [amount of VAT]
Accounting for an abatements of costs Transaction 1- record the reduction in profit costs
CR office ledger: [client name] [amount of reduction
exc VAT]
DR profit costs [amount of reduction exc VAT]
Transaction 2- record reduction in VAT
CR office ledger: [client name] [amount of VAT on
reduction]
DR VAT account [amount of VAT on reduction]
Accounting for VAT where the solicitor is acting as Transaction 1- record the payment of the invoice
principal (i.e. supply to the solicitor) CR office cash [amount of invoice]
DR office ledger: [client name] [amount of invoice]
[VAT to recover later]

Transaction 2- record payment of VAT on the invoice
DR VAT account [amount of VAT]
CR office cash [amount of VAT]

Transaction 1
When the solicitor subsequently invoices the client
DR office ledger: [client name] [amount of profit costs
for its profit costs
exc VAT]
CR profit costs [amount of profit costs exc VAT]
Transaction 2
DR office ledger: [client name] [amount of VAT on
profit costs and VAT on costs incurred]
CR VAT account [amount of VAT on profit costs and
VAT on costs incurred]
Accounting for VAT where the solicitor is acting as DR client ledger: [client name] [amount of invoice
agent (i.e. paying for ease) plus VAT]
CR client cash [amount of invoice plus VAT]

If there isn’t enough money for this to be paid out DR office ledger: [client name] [amount of invoice
of client cash, pay out of office account plus VAT]

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller hafsah00. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for £12.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

50990 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy revision notes and other study material for 15 years now

Start selling
£12.49  12x  sold
  • (0)
Add to cart
Added