Solicitors Accounts MCQs

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  • Created by: aania.b
  • Created on: 03-01-24 19:26
1. You are holding £600 generally on account of costs and disbursements for Smart Ltd, in the client bank account. You want to pay a disbursement of £800 on its behalf using one cheque.
Which ONE of the following statements is CORRECT?
A: You can make the
B: you can always firm’s money to make a payment for a client. You must not pay more from the client bank account on behalf of the client than you are holding for that client (R5.3). You cannot transfer money from the client bank account to the business b
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2. You are acting for Sidney in the purchase of his flat. Sidney sends you a cheque for £51,000 (£1000 for general costs and disbursements and £50,000 for the deposit for the purchase).
Which ONE of the following statements is CORRECT?
A: You can split th
D: The enquire receipt is client money and must be paid into the client bank account promptly (R2.3).
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3. A solicitor delivers a bill of costs to a client for professional charges of £200+ VAT of £40. The client sends the solicitor a cheque for £240 in payment of the bill.
Which ONE of the following statements is CORRECT?
A: The cheque must be paid into th
A: Payment of a bill is not within the definition of client money. All others are client money.
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4. Arthur, a client, sends his solicitor a cheque for £900 on account of costs. He telephones to ask the solicitor not to pay the cheque until the following week, as he needs to transfer the funds into his bank account to meet the cheque.
Which ONE of the
D: Client money must be paid into the client bank account promptly, but it can be withheld if alternative arrangements are agreed with the client in writing.
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5. Which ONE of the following CANNOT be paid in to your firm’s client bank account?
A: Money received from the client for an unpaid disbursement prior to delivery of a bill.
B: A cheque received from a client on account of costs. £80.
C: A cheque in settl
C: Cheque is made out to the client and so cannot be paid into either firm’s business bank account or client bank account. The firm simply acts as a post box.
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Other cards in this set

Card 2

Front

2. You are acting for Sidney in the purchase of his flat. Sidney sends you a cheque for £51,000 (£1000 for general costs and disbursements and £50,000 for the deposit for the purchase).
Which ONE of the following statements is CORRECT?
A: You can split th

Back

D: The enquire receipt is client money and must be paid into the client bank account promptly (R2.3).

Card 3

Front

3. A solicitor delivers a bill of costs to a client for professional charges of £200+ VAT of £40. The client sends the solicitor a cheque for £240 in payment of the bill.
Which ONE of the following statements is CORRECT?
A: The cheque must be paid into th

Back

Preview of the front of card 3

Card 4

Front

4. Arthur, a client, sends his solicitor a cheque for £900 on account of costs. He telephones to ask the solicitor not to pay the cheque until the following week, as he needs to transfer the funds into his bank account to meet the cheque.
Which ONE of the

Back

Preview of the front of card 4

Card 5

Front

5. Which ONE of the following CANNOT be paid in to your firm’s client bank account?
A: Money received from the client for an unpaid disbursement prior to delivery of a bill.
B: A cheque received from a client on account of costs. £80.
C: A cheque in settl

Back

Preview of the front of card 5

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