As we know it has always been the case to treat any recharges for travel expenses, air fares etc as both an income and expense in the accounts where they are passed onto customers. After the reclassification of what were formerly treated as disbursements in law firms such as search fees and medical reports (subject to their how incurred and who primarily benefitted - i.e. the solicitor enabling them to provide their services to client or the client), it seems there has been no adaption from how these transactions are recorded. Most law firms simply have processed recharges as expenses and/or as disbursements but called them 'recharges' on the bill generated to client. Seemingly neglected to translate/reflect recharges correctly as income at all - i.e. create an income & revenue noiminal account and all the expenditure still channelling through the disbursment control. I wanted to get some feedback if another accountants are encountering this issue with their legal clients and what if any you have modified in accounting systems to properly record these transactions consistently throughout the records in order to represent them correctly in year end accounts. Any comments welcome. Thanks.