top of page
Review Your SQE 1 Practice Records

Examination Timing: 00H00M27S

Sarah, a solicitor, receives a cheque for £5,000 from a client for a property purchase, which includes £3,000 for the purchase price and £2,000 for legal fees. How should Sarah handle these funds according to the SRA Accounts Rules?

< Previous

You have chosen the incorrect answer.
Your selected option: C

Next >

Sarah should deposit the entire amount into the client account initially. According to the SRA Accounts Rules, all mixed receipts that include client money and costs for the firm must be deposited into the client account first. Sarah can then transfer the £2,000 for legal fees to the business account after issuing a bill to the client. Key Point: The SRA Accounts Rules require that any funds received that contain client money must be deposited into the client account first. This ensures the protection of client money and compliance with professional standards. After proper allocation, funds intended for the firm's fees can be transferred to the business account.

Collect Question

userContent

Study CELE SQE.png
CELE SQE PASS wishes from Lucky Lion_

Ai Content

bottom of page