Solicitors Accounts Rules 1998

Test Paper 1 - Basic

Please print out this test paper and circle the answers that you think are correct.  Once completed go to the customer details form, fill it out and then print it off and return to Key Legal Accounting Services Ltd to claim your CPD points..

1.         Under Rule 1 which of the following are principles to be observed by a solicitor?

(a)        to maximise the profit of the firm

(b)        to be model employers

(c)        to keep other people’s money safely in a bank or building society account identifiable as a client account

(d)        to pay interest to a client only when requested to do so

2.         What is a professional disbursement?

(a)        any payment made by the firm

(b)        a payment made to the firm’s reporting accountant

(c)        any payment made out of office account

(d)        the fees of counsel or other lawyer, or of a professional or other agent or expert instructed by the solicitor

3.         What is the geographical scope of the rules?

(a)        England and Wales

(b)        Scotland

(c)        Ireland

(d)        all commonwealth countries

4.         Which of the following persons are governed by the rules ?

(a)        barristers

(b)        solicitors

(c)        judges

(d)        magistrates

5.         Which of the following persons are exempt from the rules ?

(a)        partners in a firm of solicitors

(b)        sole practitioners

(c)        assistant solicitors

(d)        a solicitor when carrying out the functions of a coroner

6.         Which of the principals in a firm of solicitors is responsible for compliance with the rules?

(a)        the senior partner

(b)        the financial partner

(c)        the managing partner

(d)        all the principals in the practice

7.         A client account must be held 

(a)        at a bank or building society in England and Wales

(b)        at any branch of any bank in the European Union

(c)        at a branch of any international bank

(d)        wherever the solicitor chooses

8.         Which of the following may be kept in office account?

(a)        a payment on account of costs generally

(b)        VAT on fees paid by the client to the firm

(c)        unpaid disbursements

(d)        balance sale monies due to a client after completion of a conveyancing transaction

9.         A solicitor operates a client’s own personal bank account under a power of attorney. Do the rules apply ?

(a)        yes, in full

(b)        yes, in part

(c)        no, the money is not being dealt with through the firms client account

(d)        none of the above

10.        What is a mixed payment ?

(a)        money received in more than one currency

(b)        money received in cash in different bank note denominations

(c)        one which includes client money as well as office money

(d)        money received for more than one client

11.        Which if the following cannot be withdrawn from client account?

(a)        money properly required for payment of a disbursement on behalf of a client

(b)        money for fees before a bill has been sent to the client

(c)        money which is transferred to another client account

(d)        money withdrawn on the written authorisation of the Law Society

12.        When must money received from a client be paid into client account?

(a)        without delay

(b)        at least once a week

(c)        whenever the firm next does it’s banking

(d)        there is no time limit

13.        Who can authorise withdrawals from client account ?

(a)        a trainee solicitors

(b)        the senior cashier

(c)        a barrister

(d)        a solicitor who holds a current practicing certificate

14.        What rate of interest must a solicitor pay on money held in the firm’s general client account ?

(a)        a fair sum

(b)        the lowest rate possible

(c)        whatever the solicitor chooses

(d)        none

15.        What remedy does a client have if the solicitor refuses to pay interest ?

(a)        none

(b)        to obtain a certificate as to the payment of interest from the Law Society

(c)        to contact the firm’s bank direct

(d)        to contact the Banking Ombudsman

16.        Which of the following books must a solicitor keep to comply with the rules ?

(a)        a petty cash book

(b)        a record of PAYE deductions

(c)        all bills sent by the solicitor to clients

(d)        there is no requirement to keep any accounting records

17.        How long must a firm of solicitors keep its books of accounts for?

(a)        they do not need to be kept

(b)        six years

(c)        twent five years

(d)        forever

18.        How long must a firm of solicitors keep its paid cheques for? 

(a)        they do not need to be kept

(b)        two years

(c)        twenty five years

(d)        forever

19.        Under the rules, who must carry out the firm’s annual report on its client account to the Law Society ?

(a)        the senior partner

(b)        the head of the accounts department

(c)        any of the partners

(d)        an accountant authorised under the rules

20.       How often must client account reconciliations be carried out ?

(a)        whenever it is convenient

(b)        daily

(c)        at least once every five weeks

(d)        they do not need to be carried out unless the Law Society requests it

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