You have your own paralegal practice.
You have made entries in your books for the month of October, 2019.
Below are your entries in your Trust Receipts Journal, Trust Disbursements Journal, and Clients’ Trust Ledger for the month of October 2019.
TRUST RECEIPTS JOURNAL
DATE
(2019)
FUNDS RECEIVED FROM
CLIENT
AMOUNT
METHOD OF PAYMENT
PURPOSE
Oct. 2
Jack Stein
1 - Jack Stein – landlord and tenant
$3,800.00
Cheque
Retaine
Oct. 3
Dan Smith
2 – Dan Smith – Small Claims Court
$4,635.00
Cheque
Retaine
Oct. 13
Diane Campo
3 – Diane Campo – neighbour dispute
$15,000.00
Cheque
Retaine
Oct. 14
Bad Drive
4 – Jane Ditto – car accident
$12,000.00
Bank Draft
Retaine
Oct. 29
Dan Smith
2 – Dan Smith – Small Claims Court
$6,049.00
Cheque
Retaine
Oct. 30
Jack Stein
1 – Jack Stein – landlord and tenant
$4,000.00
Cheque
Retaine
TRUSTS DISBURSEMENTS JOURNAL
DATE
(2019)
METHOD OF PAYMENT/DOC #
PAID TO
PURPOSE
CLIENT
AMOUNT
Oct. 4
Cheque #32
Ahmed Accounting
Expert Report
2 – Dan Smith
$565.00
Oct. 7
Electronic Transfer #1
Paralegal Firm
Invoice #1
1 – Jack Stein
$576.30
Oct. 12
Cheque #22
Paralegal Firm
Invoice #2
2 – Dan Smith
$254.25
Oct. 15
Electronic Transfer #3
Paralegal Firm
Invoice #3
4 – Jane Ditto
$3,028.40
Oct. 15
Cheque #31
Client – return of funds
Overpayment
4 – Jane Ditto
$8,971.60
Oct. 15
Cheque #41
Minister of Finance
Plaintiff’s Claim
3 – Diane Campo
$1,525.00
CLIENTS’ TRUST LEDGER
CLIENT NO. 1 – JACK STEIN
DATE (2019)
PURPOSE
RECEIPTS
DISBURSEMENTS
TRUST BALANCE
Oct. 2
Retaine
$3,800.00
$3,800.00
Oct. 7
Payment of Fees
$576.30
$3,223.70
Oct. 30
Retaine
$4,000.00
$7,223.70
CLEINT NO. 2 – DAN SMITH
DATE (2019)
PURPOSE
RECEIPTS
DISBURSEMENTS
TRUST BALANCE
Oct. 3
Retaine
$4,635.00
$4,635.00
Oct. 4
Payment to Ahmed Accountant
$565.00
$4,070.00
Oct. 12
Payment of fees
$254.25
$3,815.75
Oct. 29
Retaine
$6,049.00
$9,864.75
CLIENT NO. 3 – DIANE CAMPO
DATE (2019)
PURPOSE
RECEIPTS
DISBURSEMENTS
TRUST BALANCE
Oct. 13
Retaine
$15,000.00
$15,000.00
Oct. 15
Payment to court
$1,525.00
$13,475.00
CLIENT NO. 4 – JANE DITTO
DATE (2019)
PURPOSE
RECEIPTS
DISBURSEMENTS
TRUST BALANCE
Oct. 14
Settlement funds from Bad Drive
$12,000.00
$12,000.00
Oct. 15
Payment of fees
$3,028.40
$8,971.60
Oct. 15
Remainder returned to client
$8,971.60
$0.00
Below is the bank statement for your Mixed Trust Account
delivered by Humber Bank, for the month of October, 2019.
Opening Balance October 1, 2019 $0.00
Total Deposits $35,435.00
Total Withdrawals ($14,370.55)
Closing Balance, October 31, 2019 $21,064.45
DATE
DESCRIPTION
WITHDRAWALS
DEPOSITS
BALANCE
Oct. 1 Open Acct
$ XXXXXXXXXX
Oct. 2
Deposit
$ 3,800.00
Oct. 3
Deposit
$ 4,635.00
Oct. 7
Electronic Transfe
$ XXXXXXXXXX
Oct. 12
Cheque #22
$ XXXXXXXXXX
Oct. 13
Deposit
$15,000.00
Oct. 14
Deposit
$12,000.00
Oct. 15
Electronic Transfe
$3,028.40
Oct. 15
Cheque #31
$8,971.60
Oct. 15
Cheque #41
$1,525.00
Oct. 20
Banking Fee
$ XXXXXXXXXX
Oct. 28
Debit Memo
$ XXXXXXXXXX
Oct. 30
$21,064.45
Note: Cheque #22, should have cleared at the bank for $254.25 but the bank made a mistake and cleared the cheque for $ XXXXXXXXXXThe bank co
ected this mistake on October 28, 2019 by a bank debit memo of $9.00. This specific e
or has already been fixed within the month of October and therefore does not need to be accounted for separately in the reconciliation.
1. Complete the following for the month of October XXXXXXXXXXFollow the format in the 2015 paralegal bookkeeping guide provided to you in pdf format previously on Blackboard.
a. a Trust Bank Reconciliation,
. a Client Trust Listing, and
c. a Trust Comparison.
2. What is the latest date that you can complete this Trust Bank Reconciliation?
3. In regards to the $15,000.00 received by Diane Campo on October 13, 2019;
a. What type of account must the funds be deposited into and why?
. What is the deadline for depositing the funds?
(Provide explanation including the date - dd/mm/yyyy)
4. Explain in detail the following two concepts and the differences between them:
a. What is a Journal?
. What is a Ledger?
5. Outline the steps you should have taken before the issuance of Cheque #31 on Jane Ditto’s file.