Level III Diploma in Legal Bookkeeping

Type of Examination: Home-based online assessment

Detailed Syllabus: Please click here to download a pdf version

Distance Learning Course: Please click here for latest information

The Legal Profession and Legal Accounts

You will be required to:

• Understand Professional and Consumer regulation and what each authority represents.
• Understand the legal profession and how the "legal accounts department" operates.
• Understand the legal accounts process - New Matter Forms and looking after client funds.

Looking after Client Funds

You will be required to:

• Understand the implications of what client money is, and how to handle it.
• Manage the holding of funds outside of the client account, recording receipts and transfers to and from deposit.
• Manage transfers between client ledgers.
• Account for interest and commission.
• Manage payments from the client account; reconcile the client bank account, handle residual balances.
• Handle mistakes and other issues

The Office Account

• Identify the difference between "Office Account" and "Client Account".
• Identify "Office Money".
• Record transactions.
• Understand how to deal with "Mixed Money".
• Understand disbursements.
• Client invoicing.
• Post Petty Cash.
• Deal with VAT, including VAT Bad Debt Relief.
• Post Credit Notes, Write offs and Bad Debts.
• Prepare for the Accountants Report.
• Post receipts from the Legal Services Commission.
• Keep accounting records for clients accounts.
• Understand the need for compliance with the "Solicitors Account Rules".
• Handle monitoring and investigation by the Solicitors' Regulation Authority.
• Prepare the Profit and Loss Account and Balance Sheet.

Recommended reference:

Solicitors' Code of Conduct 2007

http://www.sra.org.uk/solicitors/code-of-conduct.page

Solicitors' Accounts Rules 1998

http://www.sra.org.uk/solicitors/code-of-conduct/accounts-rules/part-b-accounts-rules.page#p-b