Solicitors’ Accounts SQE1 Revision Checklist
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SQE 1 Topics
Sub Topic
Corresponding Chapter
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Accounting entries
The dual system of accounting in law firms
Chapter 1, Pages 5–7
The principles of double-entry book-keeping
Chapter 1, Pages 7–8
Layout of ledgers
Chapter 1, Pages 8–12
Journal entries
Chapter 1, Pages 12–13
Client money and client accounts
Definition and categories of client money
Chapter 2, Pages 17–19
Meaning and name of a client account
Chapter 2, Pages 19–21
Requirement to pay client money into a client account, including accounting entries
Chapter 2, Pages 21–26
Circumstances in which client money may be withheld from a client account
Chapter 2, Page 26
Requirements for client money held in a client account
Chapter 3, Pages 34–36
Requirements for withdrawals from a client account, including accounting entries
Chapter 3, Pages 36–41
Prohibition on using a client account to provide banking facilities
Chapter 3, Page 41
Requirement to keep client money separate from business money
Chapter 3, Pages 42–43
Breach of the Rules
Duty to correct breaches of the Rules
Chapter 3, Pages 43–44
Accounting entries to correct breaches where client money has been incorrectly withdrawn or withheld from a client account
Chapter 3, Pages 44–46
Interest
Requirement to pay interest on client money
Chapter 4, Pages 54–59
Interest on client money held in the general client account, including accounting entries
Chapter 4, Pages 59–63
Interest on client money held in a separate designated deposit client account, including accounting entries
Chapter 4, Pages 63–71
Bills
Submitting a bill plus VAT, including accounting entries
Chapter 5, Pages 80–84
Reducing a bill plus VAT, including accounting entries
Chapter 5, Pages 84–86
Payment of a bill plus VAT, including accounting entries
Chapter 5, Pages 86–89
VAT
VAT and disbursements
Chapter 6, Pages 97–100
Disbursements not subject to VAT
Chapter 6, Pages 100–101
The agency method for dealing with disbursements subject to VAT, including accounting entries
Chapter 6, Pages 102–104
The principal method for dealing with disbursements subject to VAT, including accounting entries
Chapter 6, Pages 105–109
Transfers
Cash transfers, including mixed receipts and accounting entries
Chapter 6, Pages 110–116
Inter-client transfers, including accounting entries
Chapter 6, Pages 116–119
Accounting issues in conveyancing
Mortgage advances and redemptions, including accounting entries
Chapter 7, Pages 126–132
Deposits held as stakeholder or agent, including accounting entries
Chapter 7, Pages 132–136
Bridging loans
Chapter 7, Page 136
Other accounts
Operation of a joint account
Chapter 7, Pages 136–137
Operation of a client’s own account
Chapter 7, Pages 137–138
Third-party managed accounts
Chapter 7, Pages 139–140
Accounting records
Internal accounting records
Chapter 8, Pages 149–151
Statements and reconciliation
Chapter 8, Pages 152–153
Accountants’ reports
Obtaining and delivery of accountants’ reports
Chapter 8, Pages 153–155
Other reporting obligations
Chapter 8, Page 155
Other requirements regarding accountants and accounting records, including storage and retention of records
Chapter 8, Page 156