ADMISSION EXAMINATION
LEGAL PRACTITIONERS’ BOOKKEEPING
PART 4
18 MARCH 2021
MEMORANDUM
PLEASE NOTE THAT THE GUIDELINE ANSWERS TO PREVIOUS
PAPERS MAY NOT BE A CORRECT REFLECTION OF THE LAW
AND/OR PRACTICE AT THE MOMENT OF READING.
NOTE TO EXAMINER: This guideline records the views of the drafters. There may be
justifiable variations in practice which are brought out in the
answers. When this happens the examiner should apply his
discretion in marking the answer.
QUESTION 1 [45]
Fee Journal
Correspondent Dr 3450
Fees Cr 3000
Vat Cr 450
Being Summons Fees
Fees Dr 600
Vat Dr 90
Correspondent Cr 690
Being 20% allowance
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Correspondent Dr 6900
Fees Cr 6000
Vat Cr 900
Being Vat for Default Judgment
Fees Dr 1200
Vat Dr 180
Correspondent Cr 1380
Being 20% allowance
Correspondent Dr 6900
Fees Cr 6000
Vat Cr 900
Being for Writ
Fees Dr 1200
Vat Dr 180
Correspondent Cr 1380
Being 20% allowance
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Correspondent Dr 1150
Fees Cr 1000
Vat Cr 150
Being collection commission
Fees Dr 200
Vat Dr 30
Correspondent Cr 230
Being 20% allowance
Correspondent Dr 17 250
Fees Cr 15 000
Vat Cr 2 250
Being fees for MOI
Fees Dr 3000
Vat Dr 450
Correspondent Cr 3 450
Being 20% allowance
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TRANSFER JOURNAL
Business Cash Book Dr 38 020
Trust Cash Book Cr 38 020
Correspondent (T) Dr 38 020
Correspondent (B) Cr 38 020
½ mark each for transactions Dr or Cr -No mark for narration and headings
(Total mark 17)
TRUST CASH BOOK
Correspondent 100 000 Transfer 38 020
(Green)
Correspondent 61 980
BUSINESS CASH BOOK
Transfer 38 020 Sheriff 1500
Sheriff 3000
Co Registered 5000
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TRUST LEDGER CORRESPONDENT (ABC ATTORNEYS)
Transfer 38 020 Cash 100 000
Cash 61 980
BUSINESS LEDGER CORRESPONDENT (ABC ATTORNEYS)
Fees 3450 Fees 690
Cash 1500 Fees 1380
Fees 6900 Fees 1380
Fees 6900 Fees 230
Cash 3000 Fees 3450
Fees 1150 Transfer 38 020
Fees 17 250
Cash 5000
FEES
Correspondent 600 Correspondent 3000
Correspondent 1200 Correspondent 6000
Correspondent 1200 Correspondent 6000
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Correspondent 200 Correspondent 1000
Correspondent 3000 Correspondent 15000
VAT
Correspondent 90 Correspondent 450
Correspondent 180 Correspondent 900
Correspondent 180 Correspondent 900
Correspondent 30 Correspondent 150
Correspondent 450 Correspondent 2250
½ mark each for transactions Dr or Cr = (22)
ABC ATTORNEYS
Re: RED VS GREEN
Fee Summons 3000 600
Vat 450 90
Paid Sheriff 1500
Fee Default Judgment 6000 1200
Vat 900 180
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Fee Writ 6000 1200
Vat 900 180
Paid Sheriff 3000
EFT Green 100 000
Collection Commission 1000 200
VAT 150 30
Re: Registration of Company
Fee drafting MOI 15000 3000
Vat 2250 450
Paid Registrar 5000
EFT You 61980
107 130 107 130
6 marks (¼ mark for each entry)
TOTAL QUESTION 1 [45]
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QUESTION 2 _____________ [15]
DR (+) Supplementary Cash book for February 2021 (½) CR (-)
Balance b/f (1) 25 000 Firm error – dep (1) 18 629
Firm error – dep (1) 18 269 Bank charges (1) 500
Reverse post dated EFT 21 600 Interest overdraft (1) 1 200
(1)
Stop order (1) 1 150
EFT payment–client (1) 15 100
Debit order (1) 20 000
Balance c/f (1) 38 490
79 969 79 969
Bank reconciliation statement as at 28 February 2021 (½)
DR (-) CR (+)
Balance as per bank statement (1) 15 000
Outstanding EFT payment from client (1) 38 500
Bank error – Trust payment (1) 14 990
Balance as per supplementary cash book (1) 38 490
53 490 53 490
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QUESTION 3 ____ [40]
Trust Ledger:
TRUST CASH BOOK
Madonna(T) 650 000 Purchase of shares 186 000
Prince(T) 300 000 S86(4) 650 000
Wayne(T) 200 000 S86(3) 100 000
Bruno(T) 150 000 Interest – Madonna 4 750
Sibiya(T) 500 000 Interest – Fidelity Fund 250
Sale of shares 205 000 Interest – Fidelity Fund 10 000
S86(4) withdrawal 655 000 Balance 1 819 000
S86(3) withdrawal 110 000
____________ ____________
2 770 000 2 770 000
____________ ____________
Balance 1 819 000
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Madonna (T)
TCB – interest 4 750 TCB – deposit 650 000
Section 86(4) -
Interest
4 750
Prince (T)
TCB – deposit 300 000
Wayne (T)
TCB – deposit 200 000
Bruno (T)
TCB – deposit 150 000
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Sibiya (T)
Purchase of shares 186 000 TCB – deposit 500 000
Sale of share 205 000
Section 86(4) – First Bank
TCB 650 000 TCB 655 000
Interest – Madonna 4 750
Interest – Fidelity 250
Fund
Section 86(3)– Second Bank
TCB 100 000 TCB 110 000
Interest 10 000
Legal Practitioner’s Fidelity Fund
TCB 250 Interest 250
TCB 10 000 Interest 10 000
(33)
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Trust reconciliation of trust creditors:
Trust Cash Book : 1 819 000
Total Trust Creditors : 1 819 000
Madonna - 650 000
Prince - 300 000
Wayne - 200 000
Bruno -150 000
Sibiya - 519 000
(7)
3.1 - (1) mark each for each ledger account = 33 marks
3.2 and 3.3 - (1) mark each balance in the trust reconciliation = 7 marks
Total = 40 marks
TOTAL: [100]
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