Solicitor's Accounts - double entry???
can someone pls give me an overview of the basic double entry transactions involved with regards to a client's account.... i'm AAT qualified and have been doing bookkeeping for several years and my employer now wants to train me up in this area as well, he will be sending me on a specialist course soon but has advised me to start doing research before hand as part of the professional development etc... so i've had a look around and am trying to make sense of things, i have done 3-way reconciliations etc. and am aware of the client and office accounts as well... i'm just having trouble trying to put things into perspective as far as the double entry is concerned...and he has also told me to read through the Solicitor's Accounts Rules latest version, so that is something i am doing but in order to understand the handbook i need to have the fundamentals sorted first...
A client, Mr. Dean pays WK Solicitors £57,000 for his case....
WK Solicitors incur expenses on behalf of the client, and the money goes out from the client account... are these known as disbursements? these amount to £12,000, i am also aware that some transactions of this sort are settled via the office account, so they would transfer £12,000 from client to office a/c and pay the disbursement on behalf of the client in that way
WK Solicitors also have fees of £32,500 for the case
i know that there comes a point where a bill is raised to account for the above....
What would be the double entry for all this please? i've tried to come up with a solution but it doesn't make sense.... i'll continue researching and trying to come up with the answers but in the meantime will definitely appreciate any input from more experienced members on this site.... i know that they will go through this on the course, but that is months away and to be honest i would like to go in having at least the basics covered.... many thanks for your help!!
p.s. i've had a look through this site and have printed out the questions/answers related to this topic as well... however, they are not specifically relevant to my query...
- Money Laundering and handover 90 1
- Does a UK LTD pay Corporation Tax before sending dividend to Holding Company? 142 3
- Where do Balance Sheet Gains get recognised in CT600? 975 47
- New starter error how to correct 104 2
- Tax implication giving money to friend (not family) 244 4
- Summer house for business only 225 2
- Taxi Plate & Car 194 5
- Dividends out of profit where P&L bfwd is in deficit 158 4
- SA316s 253 4
- Director with lots of personal expenses 117 2
- LEL and PAYE registration 131 2
- How can i allow my clients to digitally sign? 599 13
- Filing amended tax return 138 1
- Tier One Tribunal 229 11
- Is cloud accounting software all just pie in the sky 845 26
- Prompt Payment Discount (PPD) Vat 2015 - CREDIT PRIOR INVOICE 126 1
- Pooled cars legislation unfairly punitive 142 2
- New starter not showing on RTI FPS submission (MoneySoft payroll) 267 5
- Working in Iraq, how to treat the income 172 2
- Another transfer of property 164 2
- Construction CIS LLP Company 614
- Services via intermediaries and new HMRC reporting requirements 601
- LIVE: Budget aftermath webinar 390
- Pensions Regulator 360
- NIC contribution on unremitted income 298
- Using the correct forms 272
- RTI - duplicate employee record 270
- SA penalty proposals 260
- Accelerated payment notices 241
- How hard is it to reduce a code? 238