Summary
Summary LPC Solicitors' Accounts Transactions
- Course
- Institution
This document states the entries needed to be made for every transaction on the solicitors' accounts module on the LPC.
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Basic TransactionsPag Transaction description Entries CR and DR
e
46 Pay money into client account CR client ledger: [name of client] £[value] DR client cash: £[value]
Details: Client cash (on account of costs) Details: Client ledger Abbey Limited (On
account of costs)
48 Pay money out of client CR client cash £[value] DR client ledger: [name of client] £[value]
account/pay a disbursement Details: Client Ledger Abbey Limited (Land Details: Client cash (Land Registry fee)
Registry Fee)
49 Paying for disbursements out of CR office cash £[value] DR office ledger: [name of client] £[value]
office account Details: Office ledger Abbey Limited (Land Details: Office cash (Land Registry fee)
Registry fee)
49 Record/issuing a bill of costs CR profit costs £[value excluding VAT] DR office ledger: [name of client] £[value
Details: Office ledger: Abbey Limited (Bill to excluding VAT]
Abbey Limited) Details: Profit Costs (Bill to Abbey Limited)
Accounting for VAT on profit CR VAT account £[value of the VAT payable DR office ledger [name of client] £[value of
costs when issuing a bill of costs on profit costs] the VAT payable on the profit costs]
Details: Office ledger Abbey Limited (VAT on Details: VAT account (VAT on profit costs)
profit costs)
VAT IS 20%
51 Transfer money from client Transaction 1 Transaction 1
account to firm’s office account CR client cash £[value] DR client ledger: [name of client] £[value]
(settle a bill of costs) Details: Client ledger: Abbey limited (Transfer Details: Client cash (Transfer to office)
to office)
T1 takes money out of client
account Transaction 2 Transaction 2
T2 receipts money into office CR office ledger: [name of client] £[value] DR office cash £[value]
account Details: Office cash (Transfer from client) Details: Office ledger: Abbey Limited (Transfer
from client)
54 Solicitor paying money to the CR client cash £[value] DR client ledger: [name of client] £[value]
client Details: Client ledger: Abbey Limited (cheque Details: Client cash (cheque to client)
to client)
57 Splitting mixed payment CR office ledger: [name of client] £[value] DR office cash £[value]
- (option c below) Details: Office cash (Cheque from client split: Details: Office ledger: Mr Andrews (Cheque
£1,000 to office and £1,000 into client) from client split: £1,000 to office and £1,000
Where solicitor has spent £1,000 into client)
of office money on behalf of the CR client ledger: [name of client] £[value] DR client cash £[value]
client and then the client sends Details: Client cash (Cheque from client split: Details: Client ledger: Mr Andrews (Cheque
£2,000 to the solicitor. £1,000 to office and £1,000 into client) from client split: £1,000 to office and £1,000
Solicitor can: into client)
a) Pay all into client account
and transfer
b) Pay all into office account
and transfer
c) Split the money by paying
£1,000 into office and
£1,000 into client
60 Set aside/withdraw petty cash CR office cash £[value] DR petty cash account: £[value]
Details: Petty cash (withdrawal of petty cash) Details: Office cash (withdrawal of petty cash)
1
, Spending petty cash CR petty cash account £[value] DR office ledger: [name of client] £[value]
Details: Office ledger: Mega Corp (Taxi fare) Details: Petty cash (Taxi fare)
Property Transactions
Page Transaction description Entries CR and DR
80 Buyer’s receipt of deposit pending CR client ledger: [name of buyer client] £ DR client cash £[value]
exchange [value] Details: Client ledger: Abbey Limited
Details: Client cash (deposit received) (deposit received)
Payment of deposit to seller’s CR client cash £[value] DR client ledger: [name of buyer client] £
solicitors Details: Client ledger: Abbey Limited [value]
(deposit transferred) Details: Client cash (deposit transferred)
81 Seller acting as stakeholder CR client stakeholder ledger £[value] DR client cash £[value]
Seller’s receipt of deposit (holding as Details: Client cash (deposit received re Details: Client ledger: stakeholder ledger
No stakeholder at exchange) Mrs Gray) (Deposit received re Mrs Gray)
need
for Seller acting as stakeholder CR client ledger: [name of seller client] £ DR client stakeholder ledger £[value]
client On completion where deposit is [value] Details: Client ledger: Mrs Gray (transfer
cash transferred to seller Details: Client ledger: stakeholder ledger of deposit on completion)
entry (transfer of deposit on completion)
83 Seller acting as agent CR client ledger: [name of seller client] £ DR client cash £[value]
Seller’s receipt of deposit (holding as [value] Details:
agent at exchange) Details:
Payment of deposit to seller client CR client cash £[value] DR client ledger: [name of seller client] £
Details: [value]
Details:
84 Mortgage funds (method 1) CR client ledger [name of DR client cash £[value]
Recording the receipt of mortgage buyer/borrower client] £[value] Details: Client ledger: Ardwick Limited
funds in same client ledger Details: Client cash (receipt of mortgage (receipt of mortgage fund from Remnant
fund from Remnant Bank plc) Bank plc)
84 Mortgage funds (method 2) CR (lender) client ledger: [name of lender DR client cash £[value]
Recording receipt of mortgage funds client] £[value] Details: Client ledger: Remnant Bank plc
by opening a separate ledger for the Details: Client cash (receipt of mortgage (receipt of mortgage funds)
lender funds)
HOW TO SHOW THAT THE CLIENT IS CR (buyer/borrower) client ledger: DR (lender) client ledger: [name of
USING THESE FUNDS FOR PURCHSASE [name of buyer/borrower client] £ lender client] £[value]
[value] Details: Client ledger: Ardwick Limited
On completion, transfer of the Details: Client ledger: Remnant bank plc (transfer of mortgage advance)
mortgage funds from lender’s client (transfer of mortgage advance)
ledger to buyer/borrower’s client
ledger (need lender’s authority to do
this). NEED TO DO THIS BEFORE YOU
CAN TRANSFER
88 Payment of purchase price to seller’s CR client cash £[value] DR client ledger: [name of
solicitors Details: Client ledger: Ardwick Limited buyer/borrower] £[value]
2
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