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Question text The following information was obtained from the accounting records of SA Attorneys: On 1 April 2022, A South, a client of the practice, handed a cheque to the amount of R100 000 to Mr Africa and requested him to invest t...
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Question text
The following information was obtained from the accounting records of SA Attorneys:
On 1 April 2022, A South, a client of the practice, handed a cheque to the amount of R100 000 to Mr
Africa and requested him to invest the money in a fixed deposit account at ABC Bank until the money is
paid over for a property transaction.
Which one of the following statements is incorrect for the above type of investment?
Select one:
a.
The name of the trust investment account in the trust creditors ledger must also include a reference to the
specific section of the legislation.
b.
The investment should be made with banks with which the Legal Practitioners Fidelity Fund has entered
into an arrangement.
c.
95% of the interest accrued on the above money must be paid over to A South.
d.
5% of the interest accrued on money in terms of the applicable section must be paid over to SA Attorneys.
Clear my choice
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