Information about Method of keeping accounts

2. ACCOUNTING & FINANCE -2

3. Methods of keeping Accounts 1.Cash system 2.Mercantile system Solicitor’s account Books of Accounts of A solicitor

5. No notice is taken of income due but not received or expenses due but not paid.

6. In cash of professional person, most of the transactions are cash transactions and moreover they have neither time nor need for maintaining accounts on elaborate mercantile system.

8. In this method both cash and credit transactions are dully recorded in the books of accounts.

9. At the end of the financial year all expenses due but not paid and those paid in advance are given .

11. The position of a Solicitor is that of trustee. He keeps two bank account. one for his own money and other for client’s money at the end of financial year the b/s of both the bank account would appear on assets side of b/s

13. There must be a system record of the work done on behalf of clients. From which the bills of costs can be prepared.Books of accounts of a solicitor