Professional Documents
Culture Documents
Ex 5 sugg answ
Ex 5 sugg answ
Accounts
Exercise 5: Answers
Transfer Journal
On 23/3/XY, you completed the sale of a telephone booth for Mr Clarke Kent of 1 Daily Planet
Avenue, Metropolis, and his trust account ledger card shows a credit of $25,400.00 (SB Bank
cheque) received from Dr Who, the person to whom the telephone booth was sold. File No
158/XY.
You receive counsel's account for $200.00 in respect of an appearance for Mr Kent in a
Magistrates Court motor car accident claim. File No. 154/XY.
(a) Are you permitted to pay counsel's fees immediately from the funds in trust? Give
reasons for your answer.
No, the funds relate solely to the sale. Upon Mr Kent's authority $200 could be
transferred to the other trust ledger and paid.
(b) On the 29 March 20XY, assume that you are permitted to meet Counsel's fees to "A
Counsel" out of the balance of sale money in trust, because Mr Kent has written to you,
asking you to do so. He has also asked you to send him a cheque for the balance of
purchase money then remaining.
Deposit CREDIT
D
eposit
Receipt
Date 26/3/XY
Date 26/3/XY Teller No. of .
Account Name Items Leo Bank will not be responsible for delays 100 Cash
in
transmission 50
Where this deposit is lodged at a bank or 20 Cheque
branch s
1 Other than shown above it will be transferred 10 per
under the bank’s internal procedures. 5 reverse 25,400.00
Amount Tellar for Coin
& Stamp
CREDIT Total
$25,400 00 of
LEO CUSSEN LAW PRACTICE TRUST
ACCOUNT
Change $ 25,400.00
083 000 000 0000
DETAILS AMOUNT
c. Kent & Dr Who:
Sale of telephone
booth
158/XY from
XXX Bk chq
(Dr Who)
Bal rec’d at $25,400
settlement
TRUST ACCOUNT CASH RECEIPTS BOOK
For Month Ending 31 March 20XY Page 6 -
Date Rec. Client and File No. Purpose for Received Amount Total Banked
No. Matter which received From and Per Deposit
in what Voucher
20XY form $ c $ c
16/3 0251 R. Grant v G. 157/XY On a/c of costs & disb R.Grant 500 00
Grant divorce Cheque
19/3 0253 A. Johnson for 150/XY Bal of payment due A. Johnson 20,000 00 20,000 00
M. Windspear on settlement of Hair
Salon Bank Cheque
CLIENT KENT, Clarke MATTER Sale of Telephone Booth FILE NO. 158/XY
ADDRESS 1 Diary Planet Avenue, Metropolis OTHER PARTY Re: Dr Who
TRUST ACCOUNT
DATE PARTICULARS FORM CHQ. CR/CP DEBIT CREDIT BALANCE
20XY MONEY No./REC. PAGE No.
REC’D No.
IN
26/3 Fr om XXX Bank (Dr Who). Bk/chq 0255 CR p.6 25,400 00 25,400 00
being balance of payment received on
settlement of sale
29/3 Transferred to File No. 154/xy to be used Transfer 200 00 25,200 00
for Counsel’s fees Jl p.52
29/3 To C. Kent: balance of purchase money 210902 CP p.10
received on sale, less Counsels’ fees
25,200 00 NIL
210902
Date 29/3/XY 29 / .3 / XY
Payee C.Kent – Pay C. Kent ____________________________
154/XY
Bal of Purch. Money the sum of twenty - five thousand two hundred dollars __________________________ Or Order
Telephone Booth
Less counsel’s fee ____________________________________________________________________________________ $ 25,200.00
Fwd $ TRAINING PURPOSES ONLY
Chq $ 25,200.00
LEO CUSSEN LAW PRACTICE TRUST ACCOUNT L. Cussen
Bal $
210902 210902 083 000
TRANSFER JOURNAL
Folio Page XX
5.5.5
CLIENT KENT, Clarke MATTER Common Law Accident FILE NO. 154/XY
ADDRESS 1 Daily Planet Avenue, Metropolis OTHER PARTY Re: DENROSE
TRUST ACCOUNT
DATE PARTICULARS FORM CHQ. CR/CP DEBIT CREDIT BALANCE
20XY MONEY No./REC. No. PAGE No.
REC’D IN
23/3 Transferred from File No. 158/XY. Kent to Dr Who: part balance Transfer 200 00 200 00
received at settlement to be used for Counsels’ fees Jl No 53
29/3 To A Counsel being fees in respect of appearance 210901 TP p.59 200 00 NIL
TRUST ACCOUNT CASH PAYMENTS BOOK
For Month Ending 31 March 20XY Page 10 -
Date Cheque. Client and File Purpose of Paid To Amount
No. Matter No. payment $ c
20XY
16/3 210/ 898 G. Hammer re: 104/XY Counsels feeS K. Carew of 750 00
Dangerous on appearance Counsel
Driving
28/3 210/ 900 R.Grant v Grant: 157/XY Filing fee on Family Court
Dissolution of dissolution of Aust
marriage 432 00
210901
Date 29/3/XY 29 / .3 / XY
Payee A. Counsel Pay A. Counsel ____________________________
File No. 154/XY Kent - the sum of two hundred dollars ___________________________________________________ Or Order
MCA – appearance fee __________________________________________________ $ 200.00
Fwd $ TRAINING PURPOSES ONLY
Chq $ 200.00
LEO CUSSEN LAW PRACTICE TRUST ACCOUNT L. Cussen
Bal $
210901 210901 083 000