Accounts Flashcards
What are the types of financial statement?
Sale completion statement
Purchase completion statement
Estate account
(Possibly dispute/matrimonial financial statements)
Does the financial statement need to include all matters on the ledger, or just the ones that involve the matter? E.g. transferring from property to matrimonial
It needs to include everything on that ledger
What are the two main sub-titles required for completion statements?
Amounts received and amounts payable
For a sale, which way around are the main two sub-titles?
Sale: Amounts received first, followed by amounts payable
For a purchase, which way around are the main two sub-titles?
Purchase: Amounts payable first, followed by amounts received
For a sale, what should the total of the accounts received be called?
Total amounts received for sale
For a purchase, what should the total of the accounts payable be called?
Total amounts to fund purchase
What needs to be at the top of every single financial statement?
Completion statement - Date
Client:
Matter:
In a sale completion statement, what should be included in the accounts payable section?
Sale price (first)
Payment on account of costs (that was received at the start)
In sale completion statement, what should be included in the amounts received section?
Mortgage redemption (first)
Estate agents fees
Search fees
Legal professional fees
In a purchase completion statement, what should be included in the accounts received section?
Purchase price (first)
Stamp Duty
Legal professional fees
Search fees
In purchase completion statement, what should be included in the amounts payable section?
Mortgage advance (first)
Amount received from sale of previous house
Payment on Account of Costs (that was received at the start)
Which side does credit go on?
The RIGHT side (e.g. amounts payable/assets)
Which side does debit go on?
The LEFT side (e.g. amounts receivable/liabilities)
Whenever you have a total, what should you do?
Put it in bold and put a line underneath it.
For completion statements, what is the final title underneath amounts payable or received?
Balance Due to You
In estate accounts, what side does beneficiaries go on?
The RIGHT side, under liabilities
What are the two main sub-titles required for estate accounts?
Assets and Liabilities
What should the totals be called in estate accounts?
Total Assets and Total Liabilities
For estate accounts, what is the final title under total liabilities?
Balance for Ditribution to Beneficiaries
What is the final title for estate accounts?
Beneficiaries
How do you lay out the beneficiaries section with their percentages?
David Markham - 50%
Julie Markham - 50%
When the question states that each beneficiary gets the amount outlined in interstate rules, what does that mean?
It is split evenly amongst them all.
When and why would you transfer client money to a client deposit account?
When the money is not needed immediately, so it can earn interest.
