Which one of the following options is correct? Interest received on an investment in terms of section 86(3) of the Legal Practice Act, 28 of 2014 accrues to:Select one:a.the attorney’s practiceb.the Law Society of South Africac.the clientd.the Legal Practitioners Fidelity Fund

The following information was obtained from the accounting records of SA Attorneys:On 1 April 2022, A South, a client of the practice, handed a cheque to the amount of R100 000 to Mr Africa and requested him to invest the money in a fixed deposit account at ABC Bank until the money is paid over for a property transaction.Which one of the following statements is incorrect for the above type of investment?Select one:a.95% of the interest accrued on the above money must be paid over to Mr Africa.b.The investment should be made with banks with which the Legal Practitioners Fidelity Fund has entered into an arrangement.c.5% of the interest accrued on money in terms of the applicable section must be paid over to the Legal Practitioners Fidelity Fund and vests in the Legal Practitioners Fidelity Fund.d.When the invested money is withdrawn from the trust investment account it is deposited back into the trust bank account.

On 31 July 2021, SA Attorneys earned interest of R3 160 for the month from Africa Bank on the trust bank account.The interest received on the trust bank account must be dealt with in accordance with the requirements of section …. of the Legal Practice Act, 28 of 2014.Select one:a.84(1)b.86(3)c.86(2)d.86(4)

On 2 April 2022, SA Attorneys decided to invest R165 000 of trust money, not immediately needed, in a special savings account at SA Bank (An approved bank) to earn interest until the end of May 2022. All the investments were made in terms of section 86 of the Legal Practice Act 28 of 2014. The accountant recorded the transaction as follows: Trust cash payments journal for Apr 2022  Date  DetailsTrust creditors control  VAT  Bank  RRR 2 Sec 86(3) - Trust investment – SA Bank (trust creditor) 165 000 24 750 189 750 165 00024 750189 750 Which one of the following statements is correct relating to the recording of the above transaction?Select one:a.The transaction is recorded correctly.b.The transaction is recorded incorrectly because the transaction does not have any VAT effect.c.The transaction is recorded incorrectly because it should have been recorded in the Business cash receipts journal.d.The transaction is recorded in the correct journal, but the description is incorrect because it should be indicated as a Sec 86(4) – Trust investment.

According to Rule 55.1 of the Legal Practice Council, a client shall for the purpose of this investment practice rule include any person on whose behalf a firm invest funds or manages or controls investments, whether or not such person is otherwise a client of the firm concerned.Select one:TrueFalse

this interest is computed on the principal and also on the accumulated past interests