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FAC1503 - Financial Accounting Principles for Law Practitioners Assignment 2 semester 2 2020
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Assignment 02 FAC1503Unique no 571826
Semester 2 2020
ASSIGNMENT 02 – SEMESTER 2
1. Question 1
Which one of the following statements is not correct?
1. Trust money cannot be deposited directly into a trust investment account.
2. The attorney’s practice may open as many trust investment accounts as is
necessary.
3. The practitioner can levy fees once his/her obligation to the client has been
met in full.
4. The attorney’s practice must keep two sets of accounting records, one for
the business and one for the trust.
5. Trust money may be used to pay for the attorney’s practice’s expenses when
the business bank account does not have sufficient funds.
The following information pertains to questions 2, 3 and 4:
2. A client of Dlamini Attorneys, Mr Maxi, is in the process of purchasing a
house from Mr March. Mr Maxi has a credit balance of R22 000 on his trust
creditor account at 30 June 2019. All trust funds are deposited for the covering
of a deposit payable to Mr March on the purchase of the house. The client
account of Mr Maxi reflects a debit balance of R1 000 for postage and petties
incurred on behalf of the client. Dlamini Attorneys issued an
interim/provisional invoice to Mr Maxi for fees of R8 000 at the end of June
2019, before any transfer of funds.
What is the amount that needs to be at 30 June 2019?
1. R1 000 (transfer to business bank account)
2. R9 000 (transfer to business bank account)
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