Whistledown Attorneys

P$.$O$.$ Box $222$

Clyverdon

$30$ September $2023$

Debit $($R$)$

Credit $($R$)$

Daphne Hastings v Simon Hastings $-$ Maintenance matter

Collection

$30000$

Sheriff costs.

$360$

Fee: summons

$6,000$

Fee: default judgement

$2800$

Collection commission

$1500$

Allowance to you

$2060$

VAT @ $15\%$

$1545$

$309$

Daphne Hastings $-$ Registration of company

Fee for agreement

$5000$

Registrar costs

$2,000$

Council fees

$3500$

Allowance to your

$1000$

VAT @ $15\%$

$750$

$150$

Electronic fund transfer herewith

$10064$

$33519$

$33519$

Additional information

$1$

Whistledown Attorneys paid Daphne Hastings the amount collected. The mandate from

their client, Daphne Hastings, is that they may set off the costs of the company registration

against money collected from the debtor, Simon Hastings.

All necessary transfers to the business bank accounts of each attorney were made in theira

respective books of account.

Required:

Q$\mathrm{.}3\mathrm{.}1$

What percentage allowance has Danbury Attorneys allowed its correspondent

$(2)$

attorney? Support your answer with a calculation.

$0\mathrm{.}3\mathrm{.}2$

State whether the percentage allowance calculated in Q$\mathrm{.}3\mathrm{.}1$ above is acceptablen

$(1)$

and give a reason for your answer.

$0\mathrm{.}3\mathrm{.}3$

Explain the first accounting step in the books of Whistledown Attorneys once the

account statement is received from its correspondent.

Q$\mathrm{.}3\mathrm{.}4$

Record the information as contained in the correspondent account statementa

from Danbury Attorneysthe following subsidiary journals of Whistledown

Attorneys for September $2023$: $($do not total the journals$)$:

$0\mathrm{.}3\mathrm{.}4\mathrm{.}1$

Fees Journal

$(4$

Q$\mathrm{.}3\mathrm{.}4\mathrm{.}2$

Trust Cash Payments Journal

$(10)$

$0\mathrm{.}3\mathrm{.}4\mathrm{.}3$

Transfer Journal

$(2$

Q$\mathrm{.}3\mathrm{.}5$

Record all necessary entries in the following accounting records of Danbury

Attorneys:

Q$\mathrm{.}3\mathrm{.}5\mathrm{.}1$

Trust General Ledger

$(6$

Q$\mathrm{.}3\mathrm{.}5\mathrm{.}2$

Business General Ledger

$(18)$