A client, W West, instructed the attorney practice, South Attorneys, to transfer an amount of R5 200, from the trust bank account to the business bank account for fees that are due to South Attorneys after the attorney practice has rendered all services to the W West on 30 June 2021. The trust creditors control account of W West had a credit balance of R7 000 on 30 June 2021.Which one of the following options represents the correct journal entry when the funds due to South Attorneys are paid on 30 June 2021?Select one:a.Journal entryDrRCrRTrust bank accountBusiness bank accountFunds transferred to the business bank account5 200 5 200b.Journal entryDrRCrRTrust creditor control account (W West)Business bank accountFunds transferred to the business bank account5 200 5 200c.Journal entryDrRCrRBusiness bank accountTrust bank accountFunds transferred to the business bank account5 200 5 200d.Journal entryDrRCrRBusiness bank accountTrust creditor control account (W West)Funds transferred to the business bank account5 200 5 200

The following information was obtained from the accounting records of SA Attorneys:On 1 April 2022, A South, a client of the practice, paid in an amount of R100 000. The money was to be kept in trust to the benefit of A South to be used by him to purchase a business.What will be the journal entry in the accounting records of SA Attorneys to account for the transaction? Select one:a.General journalDateAccountsDebitRCreditR1 AprilTrust bank account100 000     A South /Trust creditor control 100 000b.Trust journalDateAccountsDebitRCreditR1 AprilTrust bank account100 000    A South /Trust creditor control 100 000c.Business cash receipts journalDateDetailsTrust creditors controlRBankR1 AprilA South (Client – Deposit)100 000100 000d.Trust cash receipts journalDateDetailsTrust creditors controlRBankR1 AprilA South (Client – Deposit)100 000

Which of the following statements is incorrect?Select one:a.Funds that are deposited into a trust account are neither the property of the individual attorney nor the property of the attorneys’ firm.b.When transfers are made for more than one client on a specific day, only one EFT, representing the total of the individual transfers for the day, is recorded in the business cash receipts journal for the transfer to the trust bank account.c.All transfers to the clients’ ledger and the trust creditors’ ledger should be done via the transfer journal.d.An attorney’s trust account is essentially a business bank account, established by the attorney’s firm to hold client funds.

The following balances were obtained from the accounting records of SA Attorneys on 1 February 2022: ClientTrust creditorsaccountRClients account RA South2 000 Cr4 000 DrS Africa7 000 Cr3 000 Dr 9 000 Cr7 000 Dr The following transactions took place and were accounted for on 28 February 2022:  Client Trust receipts bankRFees charged at the end of the dayRA South5 0003 800S Africa04 600 5 0008 400 A pro-forma invoice was issued on 15 February 2022 to A South for R5 000. A South immediately paid the amount into the account of SA Attorneys.What will be the amount that must be transferred to the business bank account from the trust bank account from S Africa after all obligations to S Africa were met in full on 28 February 2022?Select one:a.R7 000b.R0 because an amount of R2 400 should be transferred to the clients account of S Africac.R3 000d.R3 800

The following information was obtained from the accounting records of SA Attorneys:On 1 April 2022, A South, a client of the practice, handed a cheque to the amount of R100 000 to Mr Africa and requested him to invest the money in a fixed deposit account at ABC Bank until the money is paid over for a property transaction.Which one of the following statements is incorrect for the above type of investment?Select one:a.95% of the interest accrued on the above money must be paid over to Mr Africa.b.The investment should be made with banks with which the Legal Practitioners Fidelity Fund has entered into an arrangement.c.5% of the interest accrued on money in terms of the applicable section must be paid over to the Legal Practitioners Fidelity Fund and vests in the Legal Practitioners Fidelity Fund.d.When the invested money is withdrawn from the trust investment account it is deposited back into the trust bank account.

SA Attorneys keep a small amount of cash in the office for small, general business related expenses. On 14 February 2022, Mr A South (attorney), requested his secretary, Ms S North, to purchase some refreshments for the staff. Ms S North used the small amount of cash kept in the office to pay for the refreshments. The transaction will be entered into the .... as book of first entry.Select one:a.Trust cash payments journalb.Petty cash journalc.General journald.Business cash payments journal