1
SOLICITOR’S ACCOUNTS EXAM QUESTIONS AND
CORRECT ANSWERS 2024/2025.
money received for costs in payment of a bill or agreed fee - client or office
money? - (ANSWER)Office Money
money received as an advance or on account of costs generally - client or office
money? - (ANSWER)Client Money
money received to cover disbursements which have not yet been paid - client or
office money? - (ANSWER)Generally Client Money - limited exception at 12.7(e) -
money received for disbursements not yet paid but for which firm has incurred
liability eg account at Land Reg where pays monthly for searches. Exception does
NOT apply to unpaid 'professional' disbursements even where firm has incurred
liability - still = Client Money here.
Money held for a principal - client or office money? - (ANSWER)Office money -
R12.8
Do NOT have to record receipt, but it is prudent to do so
Money held for a principal and someone else - client or office money? -
(ANSWER)Client money
, 2
What do you do if client gives you a cheque but asks you not to cash it until later -
(ANSWER)- R12.3 don't pay it in because client has asked you not to - need to
confirm this in writing.
- BUT still record the receipt as under R29 you have still dealt with client money
What do you do with a post-dated cheque - (ANSWER)- Doesn't count as 'money'
until the date arrives
- so not dealing with client money - no need to record atm
- make usual entries when due date arrives
What do you do with a cheque received in pursuance of CFA, containing mix of
damages, fees and disbursements? - (ANSWER)R14.2(e) pay all into client
account then transfer out money for fees and disbursements within 14 days
Where to find rules re: client and office money - (ANSWER)Rule 12
Recording Receipts - basic entries - (ANSWER)Credit Client ledger (client or office
section)
Debit Cash ledger
Making Payments - basic entries - (ANSWER)Debit Client ledger (client or office
section)
Credit Cash ledger
SOLICITOR’S ACCOUNTS EXAM QUESTIONS AND
CORRECT ANSWERS 2024/2025.
money received for costs in payment of a bill or agreed fee - client or office
money? - (ANSWER)Office Money
money received as an advance or on account of costs generally - client or office
money? - (ANSWER)Client Money
money received to cover disbursements which have not yet been paid - client or
office money? - (ANSWER)Generally Client Money - limited exception at 12.7(e) -
money received for disbursements not yet paid but for which firm has incurred
liability eg account at Land Reg where pays monthly for searches. Exception does
NOT apply to unpaid 'professional' disbursements even where firm has incurred
liability - still = Client Money here.
Money held for a principal - client or office money? - (ANSWER)Office money -
R12.8
Do NOT have to record receipt, but it is prudent to do so
Money held for a principal and someone else - client or office money? -
(ANSWER)Client money
, 2
What do you do if client gives you a cheque but asks you not to cash it until later -
(ANSWER)- R12.3 don't pay it in because client has asked you not to - need to
confirm this in writing.
- BUT still record the receipt as under R29 you have still dealt with client money
What do you do with a post-dated cheque - (ANSWER)- Doesn't count as 'money'
until the date arrives
- so not dealing with client money - no need to record atm
- make usual entries when due date arrives
What do you do with a cheque received in pursuance of CFA, containing mix of
damages, fees and disbursements? - (ANSWER)R14.2(e) pay all into client
account then transfer out money for fees and disbursements within 14 days
Where to find rules re: client and office money - (ANSWER)Rule 12
Recording Receipts - basic entries - (ANSWER)Credit Client ledger (client or office
section)
Debit Cash ledger
Making Payments - basic entries - (ANSWER)Debit Client ledger (client or office
section)
Credit Cash ledger
