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.

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)

The following information was obtained from the accounting records of SA Attorneys:On 1 April 2022, A South, a client of the practice, paid in an amount of R100 000. The money was to be kept in trust to the benefit of A South to be used by him to purchase a business.What will be the journal entry in the accounting records of SA Attorneys to account for the transaction? Select one:a.General journalDateAccountsDebitRCreditR1 AprilTrust bank account100 000     A South /Trust creditor control 100 000b.Trust journalDateAccountsDebitRCreditR1 AprilTrust bank account100 000    A South /Trust creditor control 100 000c.Business cash receipts journalDateDetailsTrust creditors controlRBankR1 AprilA South (Client – Deposit)100 000100 000d.Trust cash receipts journalDateDetailsTrust creditors controlRBankR1 AprilA South (Client – Deposit)100 000

On 1 March 2022, SA Attorneys (a registered VAT vendor and VAT is charged at 15%) received a loan of R230 000 from SA Bank. Interest is charged at 8% per annum and the loan is repayable in monthly instalments of R5 000. The interest payable on the loan was already recorded on 31 March 2022. On 1 April 2022, SA Attorneys paid the first instalment with an EFT. The entry on 1 April 2022 in the book of first entry will be:Select one:a.In the bank column - R5 000; and in the Debtors column - R5 000b.In the bank column - R5 000; and in the Creditors column - R5 000c.In the bank column - R5 000; in the VAT input column - R625; and in the Sundries column - Loan: SA Bank - R4 375d.In the bank column - R5 000; and in the Sundries column - Loan: SA Bank - R5 000

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.

The following balances were obtained from the accounting records of SA Attorneys on 1 February 2022: ClientTrust creditorsaccountRClients account RA South2 000 Cr4 000 DrS Africa7 000 Cr3 000 Dr 9 000 Cr7 000 Dr The following transactions took place and were accounted for on 28 February 2022:  Client Trust receipts bankRFees charged at the end of the dayRA South5 0003 800S Africa04 600 5 0008 400 A pro-forma invoice was issued on 15 February 2022 to A South for R5 000. A South immediately paid the amount into the account of SA Attorneys.What will be the amount that must be transferred to the business bank account from the trust bank account from S Africa after all obligations to S Africa were met in full on 28 February 2022?Select one:a.R7 000b.R0 because an amount of R2 400 should be transferred to the clients account of S Africac.R3 000d.R3 800