100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Solicitors Accounts $20.49
Add to cart
Quickly navigate to
Preview
  2.  
  3. Solicitors Accounts
  4.  
  5. Solicitors Accounts

Exam (elaborations)

Solicitors Accounts

 0 purchase
  • Course
  • Solicitors Accounts
  • Institution
  • Solicitors Accounts

Solicitors Accounts Solicitors Accounts Solicitors Accounts Solicitors Accounts Solicitors Accounts Solicitors Accounts Solicitors Accounts Solicitors Accounts Solicitors Accounts Solicitors Accounts Solicitors Accounts Solicitors Accounts Solicitors Accounts Solicitors Accounts Solicitors Accounts

Preview 2 out of 8  pages

Document information

  • August 26, 2024
  • 8
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

Written for

  • Solicitors Accounts
  • Solicitors Accounts

Seller

avatar-seller
tutor1

Reviews received

Content preview

Solicitors Accounts
Where is charges for professional services recorded? - ANSWER As CR on income account -
client's debt is recorded as a DR entry on an account in the name of the client

Where is interest recorded on a ledger if the bank pays it into the separate designated account? -
ANSWER Recorded as a CR on the clients new ledger and DR on deposit cash account

Which account does a firm pay legal aid payments into? - ANSWER Into the firm business account

Which bank account pays the disbursement on a principal method? - ANSWER Business, even if
there is client money available

Who holds the money in a Third Party Managed Account? - ANSWER The TPMA Provider
(therefore it is NOT client money)

A firm may open a joint account with a client or 3rd party. Would this be client money? -
ANSWER YES it is client money but it is NOT a client account - it is in the name of soliciotr/firm
and client/3rd party

Are services which are necessary for the supply of legal services, classed as a disbursement? -
ANSWER NO

Are traveling expenses incurred by a solicitor classed as disbursements? - ANSWER NO (solicitor
must pay for them)

Before a firm pays any costs from the client bank account, what should they do? -
ANSWER Must give a bill of costs or written notification to the client BEFORE you transfer the
money. And any payment must be for a specific sum.

Can a client bank account be used as a banking facility? - ANSWER NO = serious breach of rules
under SRA

Can a firm may a payment for disbursements without issuing a bill or written notification? -
ANSWER Yes - the firm must make it clear to the client that the money may be used to reimburse
the firm for payments made, it will then be permitted without issuing a bill

Can a firm write off client debt? - ANSWER Yes if they realise the client is not going to pay.
CR client ledger account - business section

DR bad debts account

Can a person choose to register as a taxable person? - ANSWER Yes if they want to recover input
tax charged to them

Can the SRA obtain an accountant's reports? - ANSWER Yes on reasonable notice
Can withdrawals from a client bank account be made if there is not sufficient funds? - ANSWER
No - Rule 5.3 says there must be sufficient funds

Can you hold client money to pay the client's routine outgoings? - ANSWER No = breach of rule
3.3

, Solicitors Accounts
Do firms always have to obtain an accountants report? - ANSWER Not if all the client money is
received from Legal Aid or the total balance of the firms client accounts does not exceed £10,000
and a maximum of £250,000 in foreign currency

Do firms like to train insurance commission? - ANSWER No it is rare

Does a firm have to keep a central record of bills? - ANSWER Yes + other written notifications of
costs to be readily accessible

Does a firm need permission to use a TPMA? - ANSWER No but they should notify the SRA they
are using it

Does client money include money received for disbursements which have already been paid? -
ANSWER No - where money is received for reimbursements of such payment, it is a receipt of
business money

Does HMRC regard disbursements as part of legal services? - ANSWER NO = firm does not have to
charge VAT on them

Does the firm need to prepare bank reconciling statement for the client bank accounts? - ANSWER
Yes rule 8.3 = cash book should be up to date

Does the SRA accept billing for anticipated fees and disbursements? - ANSWER Yes but they
highlight risks such as the client terminating the retainer

For VAT purposes, what did the House of Lords statement can only amount to qualify as a
disbursement? - ANSWER When the expense is supplied by a 3rd party and you merely act as a
representative for your client

Give an example of an exempt supply - ANSWER Land (except new commercial sales)

Insurance some postal services finance health services burial and cremation

How are disbursements charged to the client if an agent is being used? - ANSWER They are
charged to the client as usual + it adds the agent's professional charges to its own charges

How are non-disbursements recorded on a client ledger? - ANSWER They are DEBITED to client
ledger when they are paid and CR Cash Account - business section with the VAT entered separately

How are professional fees recorded if an agent is being used? - ANSWER As an expense of the
instructing firm

How do you record an inter-client transfer? - ANSWER No entries on cash account as no money is
moving.

But a DR entry in client section on ledger account of who the money was originally for and a CR entry
in client section of ledger for whom money is moving.



DR client ledger for 1st client and CR ledger for 2nd client.

How is an agency firm treated in the ledgers? - ANSWER There is a client ledger account in the
name of the instructing firm and normal entries are made

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 or Stuvia-credit 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 tutor1. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $20.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

65646 documents were sold in the last 30 days

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

Start selling

Recently viewed by you

Exam (elaborations) ·

(0)

Solicitors' Accounts

Exam (elaborations) ·

(0)

Solicitors Accounts

Package deal ·

(0)

Inleiding tot het recht

Exam (elaborations) ·

(0)

Solicitors accounts

Summary ·

(0)

Samenvattingen VMV 5

Other ·

(0)

Sociaal recht examen

Summary ·

(0)

La théorie de l'Attachement

Other ·

(0)

CPE study guide and script

Class notes ·

(0)

study guide exam one
$20.49
  • (0)
Add to cart
Added