Solicitors Accounts Summary
Use of a third party managed account - ANSWER A third party managed account can be used for
payments.
VAT ledger - ANSWER Record book for recording VAT on bills of costs and disbursements.
Withdraw client money from a client account - ANSWER Client money can be withdrawn for the
purpose it is being held or with client instructions.
Withdrawal of client money to pay the firm's costs - ANSWER Client money can be used to pay
the firm's costs with a bill provided.
Writing off a bad debt and VAT - ANSWER Removing a debt and VAT from the accounts.
Cash sheet for the client account - ANSWER Record book for recording money paid into or taken
out of the client account.
Client ledger - ANSWER Record book for recording client money transactions.
Client Money - ANSWER Money belonging to the client, kept in a separate account at a bank.
Abating a bill plus VAT - ANSWER Reducing the amount of a bill and VAT.
Accounting for a fair sum of interest on client money - ANSWER Interest must be paid on client
money held by the firm.
Authorised and supervised withdrawal of client money - ANSWER All withdrawals from client
account must be authorised and supervised.
Cash sheet for the business account - ANSWER Record book for recording money paid into or
taken out of the business account.
Correction of breaches of the SRA Accounts Rules - ANSWER Any money improperly withheld or
withdrawn must be immediately paid into the account.
Deposit money received and held by you as agent or stakeholder - ANSWER Money received and
held on behalf of the client for a property sale.
Deposit monies paid out by buyer's solicitor to seller's solicitor - ANSWER Money paid from the
buyer's solicitor to the seller's solicitor as a deposit.
Deposit monies received by buyer's solicitor from buyer - ANSWER Money received from the
buyer for a property purchase.
Disbursements - ANSWER Costs or expenses paid to a third party on behalf of the client.
Double entry book-keeping - ANSWER Each transaction has two entries, one debit and one credit.
Example of double entry book-keeping - ANSWER An example of how an entry would look on the
ledgers.
Exemption from accountant's report for specific cases - ANSWER An accountant's report is not
required in certain cases.
Fees/Profit Costs - ANSWER Charges for legal and professional services provided by the firm.
Use of a third party managed account - ANSWER A third party managed account can be used for
payments.
VAT ledger - ANSWER Record book for recording VAT on bills of costs and disbursements.
Withdraw client money from a client account - ANSWER Client money can be withdrawn for the
purpose it is being held or with client instructions.
Withdrawal of client money to pay the firm's costs - ANSWER Client money can be used to pay
the firm's costs with a bill provided.
Writing off a bad debt and VAT - ANSWER Removing a debt and VAT from the accounts.
Cash sheet for the client account - ANSWER Record book for recording money paid into or taken
out of the client account.
Client ledger - ANSWER Record book for recording client money transactions.
Client Money - ANSWER Money belonging to the client, kept in a separate account at a bank.
Abating a bill plus VAT - ANSWER Reducing the amount of a bill and VAT.
Accounting for a fair sum of interest on client money - ANSWER Interest must be paid on client
money held by the firm.
Authorised and supervised withdrawal of client money - ANSWER All withdrawals from client
account must be authorised and supervised.
Cash sheet for the business account - ANSWER Record book for recording money paid into or
taken out of the business account.
Correction of breaches of the SRA Accounts Rules - ANSWER Any money improperly withheld or
withdrawn must be immediately paid into the account.
Deposit money received and held by you as agent or stakeholder - ANSWER Money received and
held on behalf of the client for a property sale.
Deposit monies paid out by buyer's solicitor to seller's solicitor - ANSWER Money paid from the
buyer's solicitor to the seller's solicitor as a deposit.
Deposit monies received by buyer's solicitor from buyer - ANSWER Money received from the
buyer for a property purchase.
Disbursements - ANSWER Costs or expenses paid to a third party on behalf of the client.
Double entry book-keeping - ANSWER Each transaction has two entries, one debit and one credit.
Example of double entry book-keeping - ANSWER An example of how an entry would look on the
ledgers.
Exemption from accountant's report for specific cases - ANSWER An accountant's report is not
required in certain cases.
Fees/Profit Costs - ANSWER Charges for legal and professional services provided by the firm.
