Formative Assessment Qs 11 - 20

Question 1

When trust monies are paid to the agency, these must be deposited into the trust account using a trust account deposit form. Which shows the details of all individual payments being banked, and a single amount being in the banking deposit. The trust account deposit form needs to include the following:

Answer 1

• Date
• Account number
• Name of account
• If cheque, the drawer, bank and branch name, bank stamp
• Paid - signature
• Amount
• Total
• Cash
• Total deposit

Question 2

What is the main function of the cash books in a trust account?

Answer 2

Chronologically recording transactions for all trust receipts and payments

Question 3

What is the main function of the ledgers in a trust account?

Answer 3

Recording receipts and payments of monies for each client or special purpose area of the trust account (e.g.: commission clearing ledger).

Question 4

What is a requirement when paying funds from the trust account?

Answer 4

The process for paying funds from the trust account is different to depositing funds into this account. Agency staff must verify written instructions by using authorisation records before making payments from the trust account.

Question 5

What information should be recorded in a cashbook for each disbursement (payment) made from the trust account?

Answer 5

Date, amount, payee, owner’s name, property address, cheque number/EFT number and brief particulars for the purpose of the payment.

Question 6

Who has authorisation to access Ace Real Estate’s Trust account? Please locate the Trust Account Policy in the agency’s Operations Manual.

Answer 6

Any withdrawals from the Trust Account must be made by the Trust Accounts Administrator and authorised by the OIEC/Principal Agent

Question 7

True or False: Before drawing a trust account cheque or making an EFT payment, the relevant client ledger account should be viewed to ensure the account contains sufficient cleared funds to cover the payment to be disbursed.

Answer 7

True.

Question 8

When a conveyancer requests a balance of deposit from the vendor. What do you need to check before you process the payment?

Answer 8

Trust Ledger and Client Ledger

Question 9

If money is credited to the wrong client ledger, what must be done to correct the error?

Answer 9

All of the above.

Question 10

When a trust account cheque is drawn, or EFT paid, the following particulars must be written on the cheque butt or other document:

Answer 10

All of the above.