Notes created using BPP materials and the CPR for the purpose of assisting existing BPP LPC students in BPP LPC exams only. They are intended to be used as a supplemental tool to aid revision in
conjunction with BPP materials, not as a replacement for them.
Only use office money when: There is no client money
Acting as a principal + VAT charged
Told to
TRANSACTION CLIENT/ OFFICE ££ CLIENT/OFFICE LEDGERS
ACCOUNT
Cheque from client On account of costs Client money – Rule 2.1(a) Client account CR Client ledger
(legal services provided by – Rule 4.1 DR Client cash
you to client)
Split costs CR Office ledger
DR Office cash
CR Client ledger
DR Client cash
Pay whole into client CR Client ledger
account DR Client cash
Pay whole into office CR Office ledger
account DR Office cash
Disbursements Disbursement paid on Suff funds in client account:
behalf of client DR Client ledger
CR Client cash
Insuff funds in client account:
DR Office ledger
CR Office cash
Cheque from client to Office money – Rule 2.1(d) Office account CR Office ledger
cover paid disbursements (only money sent by a DR Office cash
, client re unpaid
disbursements is client ££)
Cheque from client to Client money – Rule 2.1(d) Client account CR Client ledger
cover unpaid (money sent by a client re DR Client cash
disbursements unpaid disbursements is
client ££)
Bill of costs Bill of costs sent to client DR Office ledger
CR Profit costs
Cheque from client to pay Office money – Rule 2.1(d) Office account CR Office ledger
bill of costs (money sent re fees prior DR Office cash
to a bill being delivered is
client ££)
Petty cash Firm spends petty cash on DR Office ledger
behalf of client CR Petty cash
Withdraw money from DR Petty cash
office account to keep as CR Office cash
petty cash
Pay firm out of client account Take money out of client account:
DR Client ledger
CR Client cash
Receive the money into the office ledger:
CR Office ledger
DR Office cash
Cheque received payable to client Cannot be banked by firm – pass on to client No double entries made
Return/Pay money to client DR Client ledger
CR Client cash
conjunction with BPP materials, not as a replacement for them.
Only use office money when: There is no client money
Acting as a principal + VAT charged
Told to
TRANSACTION CLIENT/ OFFICE ££ CLIENT/OFFICE LEDGERS
ACCOUNT
Cheque from client On account of costs Client money – Rule 2.1(a) Client account CR Client ledger
(legal services provided by – Rule 4.1 DR Client cash
you to client)
Split costs CR Office ledger
DR Office cash
CR Client ledger
DR Client cash
Pay whole into client CR Client ledger
account DR Client cash
Pay whole into office CR Office ledger
account DR Office cash
Disbursements Disbursement paid on Suff funds in client account:
behalf of client DR Client ledger
CR Client cash
Insuff funds in client account:
DR Office ledger
CR Office cash
Cheque from client to Office money – Rule 2.1(d) Office account CR Office ledger
cover paid disbursements (only money sent by a DR Office cash
, client re unpaid
disbursements is client ££)
Cheque from client to Client money – Rule 2.1(d) Client account CR Client ledger
cover unpaid (money sent by a client re DR Client cash
disbursements unpaid disbursements is
client ££)
Bill of costs Bill of costs sent to client DR Office ledger
CR Profit costs
Cheque from client to pay Office money – Rule 2.1(d) Office account CR Office ledger
bill of costs (money sent re fees prior DR Office cash
to a bill being delivered is
client ££)
Petty cash Firm spends petty cash on DR Office ledger
behalf of client CR Petty cash
Withdraw money from DR Petty cash
office account to keep as CR Office cash
petty cash
Pay firm out of client account Take money out of client account:
DR Client ledger
CR Client cash
Receive the money into the office ledger:
CR Office ledger
DR Office cash
Cheque received payable to client Cannot be banked by firm – pass on to client No double entries made
Return/Pay money to client DR Client ledger
CR Client cash
