SQE1 sample questions

Question 27

A firm of solicitors is acting on behalf of a client who is selling his property and purchasing a new property. On exchange of contracts for the sale, the firm receives a deposit of £25,000 which is to be held as stakeholder.

Which pair of double entries best shows how the receipt of the deposit should be recorded in the firm's accounting records?

A. Credit cash sheet client account
     Debit joint stakeholder ledger

B. Credit cash sheet business account
     Debit joint stakeholder ledger

C. Credit client ledger client account
     Debit joint stakeholder ledger

D. Credit joint stakeholder ledger
     Debit cash sheet client account

E. Credit cash sheet client account
     Debit client ledger client account


D. Credit joint stakeholder ledger
     Debit cash sheet client account


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