Solicitors Accounts Exam 2 Questions With Correct Answers
The Overarching Objective: CORRECT ANSWER Rule 1.1 of SRA Accounts Rule - To keep client money safe Office Money: CORRECT ANSWER Belongs to firm Client Money: CORRECT ANSWER Belongs to clients. Rule 12 SRA 12.2 & 12.7: CORRECT ANSWER set out the distinctions between what is client money and what is office money. Rule 12.7 is the main rule listing examples of what is office money Out of scope money: CORRECT ANSWER money received by a multi-disciplinary partnership in relation to activities not regulated by the SRA. (IGNORE) Accounting Records Part 4 of Rules (26-30): CORRECT ANSWER specifies in detail how the accounts of Solicitors must be kept. Rule 29 states that every Solicitor must at all times keep properly written-up accounts. Rules 13-21 CORRECT ANSWER deals with what funds should be kept in each account. Look at Rules 14,17,18 & 20 in particular. 3 Basic Rules of solicitor's accounts: CORRECT ANSWER 1. There will always be 2 entries for every transaction (double entry book-keeping) 2. One of each pair will be a credit entry (CR) and the other a debit entry (DR). 3. Either both entries will be in client or both entries will be in office, you can never have a pair of entries where one will be in client & the other is in office
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