Dickletton Attorneys' policy is to bank all receipts in its Trust bank account and at the...

 

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Dickletton Attorneys' policy is to bank all receipts in its Trust bank account and at the end of each month the bookkeeper transfers the relevant funds due to Dickletton Attorneys from the trust to the business account. You represent Mrs Victoria in numerous legal matters. She is in the process of a divorce and also instructs you to prepare a sale agreement in which she sells a property to Miss Mpho Bouwer for 2 million. You act for Mrs Victoria. The agreement contains the following provisions: a) The 10% of the R2 000 000 purchase price should be made is to be held in the trust pending transfer. b) The balance of R1 800 000 is to be secured by a mortgage bond from Disca Bank and will be paid on coclusion of the agreement. c) The costs of the estate agent are paid by Mrs Victoria. The following transactions took place during the month of March 2021. 1 1. 2. 2 3. 16 17 18 30 REQUIRED 31 The parties sign the agreement & Mpho gives you cheques for R200 00 for the deposit. Mpho requests you to invest the money. You execute the instruction and invest the money at ABASA Bank, Dickletton Attorneys receives the bank guarantee of R1 800 000 from Disca Bank. The estate agent submits a pro forma invoice of R75 000. Dickletton Attorneys submit their pro forma invoice to Mpho for the costs of transfer of R150 000. This amount includes transfer duty of R60 500 and fees of R89 500. Mpho processes an EFT on the same day. Dicklettón Attorneys pays the transfer duty over to SARS. The property is transferred. On closing the Investment account, ABASA Bank pays out interest of R18 500. The bookkeeper transfers all monies entitled to the practice for the services rendered during the month Prepare the Trust Bank Account Prepare the Trust Account of Miss M Bouwer & Mrs Victoria Prepare the Section 78(2A) Account [10] [7] [3] Dickletton Attorneys' policy is to bank all receipts in its Trust bank account and at the end of each month the bookkeeper transfers the relevant funds due to Dickletton Attorneys from the trust to the business account. You represent Mrs Victoria in numerous legal matters. She is in the process of a divorce and also instructs you to prepare a sale agreement in which she sells a property to Miss Mpho Bouwer for 2 million. You act for Mrs Victoria. The agreement contains the following provisions: a) The 10% of the R2 000 000 purchase price should be made is to be held in the trust pending transfer. b) The balance of R1 800 000 is to be secured by a mortgage bond from Disca Bank and will be paid on coclusion of the agreement. c) The costs of the estate agent are paid by Mrs Victoria. The following transactions took place during the month of March 2021. 1 1. 2. 2 3. 16 17 18 30 REQUIRED 31 The parties sign the agreement & Mpho gives you cheques for R200 00 for the deposit. Mpho requests you to invest the money. You execute the instruction and invest the money at ABASA Bank, Dickletton Attorneys receives the bank guarantee of R1 800 000 from Disca Bank. The estate agent submits a pro forma invoice of R75 000. Dickletton Attorneys submit their pro forma invoice to Mpho for the costs of transfer of R150 000. This amount includes transfer duty of R60 500 and fees of R89 500. Mpho processes an EFT on the same day. Dicklettón Attorneys pays the transfer duty over to SARS. The property is transferred. On closing the Investment account, ABASA Bank pays out interest of R18 500. The bookkeeper transfers all monies entitled to the practice for the services rendered during the month Prepare the Trust Bank Account Prepare the Trust Account of Miss M Bouwer & Mrs Victoria Prepare the Section 78(2A) Account [10] [7] [3]

Answer rating: 100% (QA)

Answer 1 TRUST BANK ACCOUNT Date Description Reference Debit Credit 132021 Deposit cheques 200 000 2... View the full answer