Overview
Our free Solicitors Accounts notes cover everything you need to know for the Solicitors' Qualifying Exam (SQE). From Solicitors Account Rules and recording transactions to handling VAT and client money, we've got you covered. Whether you're in a classroom or taking the self-study route, these notes provide added peace of mind, knowing that you have everything you need to help consolidate and revise effectively for the SQE1 exam. Think something could be better? Give us a shout on our contact page, and we'll take a look.
We've created comprehensive study guides for all SQE1 FLK1 and FLK2 topics. Check out our other free notes below:
FLK1
FLK2
- Criminal Law and Practice
- Land Law
- Property Practice
- Solicitors Accounts
- Trusts
- Wills and the Administration of Estates
1. Introduction to Solicitors' Accounts
- Purpose and importance of compliance with the SRA Accounts Rules
- Overview of client money and client accounts
- Understanding the Solicitors Regulation Authority (SRA) framework
2. Client Money
- Definition of client money
- Requirement to pay client money into a client account
- Exceptions: circumstances when client money may be withheld from a client account
- Requirement to keep client money separate from money belonging to the authorised body
- Repayment of client money to clients
- Accounting entries related to client money transactions
3. Client Accounts
- Meaning and designation of a client account
- Obligation not to use client accounts to provide banking facilities
- Permitted withdrawals from client accounts
- Requirement to pay interest on client money
- Accounting entries required for client account transactions
- Understanding 'T-accounts' and their application
- Debits and credits in asset accounts
- Debits and credits in liability and equity accounts
- Solicitors' account entries and double-entry bookkeeping principles
4. Accounting Procedures and Entries
- Disbursements using the agency and principal methods
- Transfers between client and office accounts
- Submission, reduction, and payment of bills, including VAT considerations
- Accounting for VAT elements in transactions
- Maintaining accurate client ledgers and records
5. Breaches of the SRA Accounts Rules
- Duty to correct breaches promptly upon discovery
- Common types of breaches and how to prevent them
- Accounting entries required to rectify breaches
- Consequences and implications of non-compliance
6. Record-Keeping Requirements
- Requirement to keep and maintain accurate records
- Reconciliation of client accounts
- Keeping records of bills and financial transactions
- Storage and retention of accounting records
- Obligations under the SRA Accounts Rules regarding record-keeping
7. Joint Accounts and Third-Party Managed Accounts
- Operation of joint accounts
- Operation of a client's own account
- Understanding third-party managed accounts
- Accounting procedures for special account types
