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Solicitors Accounts – Deposit of £25,000 | SQE1 – SQE2 Questions and Answers Examples

Solicitors Accounts – Deposit of £25,000

 

A firm of solicitors is acting on behalf of a client who is selling his property and purchasing a new property. A deposit of £25,000 has been received in respect of the sale and is held as stakeholder.

Which pair of double entries shows how the receipt of the deposit should be recorded?

Answers:

A. Credit cash sheet client account Debit stakeholder ledger

B. Credit cash sheet business account Debit stakeholder ledger

C. Credit client ledger client account Debit stakeholder ledger

D. Credit stakeholder ledger Debit cash sheet client account

E. Credit cash sheet client account Debit client ledger client account

 

Correct answer:

D. Credit stakeholder ledger Debit cash sheet client account

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