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 | Retainer |
| Oct. 3 | Dan Smith | 2 – Dan Smith – Small Claims Court | $4,635.00 | Cheque | Retainer |
| Oct. 13 | Diane Campo | 3 – Diane Campo – neighbour dispute | $15,000.00 | Cheque | Retainer |
| Oct. 14 | Bad Driver | 4 – Jane Ditto – car accident | $12,000.00 | Bank Draft | Retainer |
| Oct. 29 | Dan Smith | 2 – Dan Smith – Small Claims Court | $6,049.00 | Cheque | Retainer |
| Oct. 30 | Jack Stein | 1 – Jack Stein – landlord and tenant | $4,000.00 | Cheque | Retainer |
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 | Retainer | $3,800.00 | | $3,800.00 |
| Oct. 7 | Payment of Fees | | $576.30 | $3,223.70 |
| Oct. 30 | Retainer | $4,000.00 | | $7,223.70 |
CLEINT NO. 2 – DAN SMITH
| DATE (2019) | PURPOSE | RECEIPTS | DISBURSEMENTS | TRUST BALANCE |
| Oct. 3 | Retainer | $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 | Retainer | $6,049.00 | | $9,864.75 |
CLIENT NO. 3 – DIANE CAMPO
| DATE (2019) | PURPOSE | RECEIPTS | DISBURSEMENTS | TRUST BALANCE |
| Oct. 13 | Retainer | $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 Driver | $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 | | | | $ 0.00 |
| Oct. 2 | Deposit | | $ 3,800.00 | |
| Oct. 3 | Deposit | | $ 4,635.00 | |
| Oct. 7 | Electronic Transfer | $ 576.30 | | |
| Oct. 12 | Cheque #22 | $ 245.25 | | |
| Oct. 13 | Deposit | | $15,000.00 | |
| Oct. 14 | Deposit | | $12,000.00 | |
| Oct. 15 | Electronic Transfer | $3,028.40 | | |
| Oct. 15 | Cheque #31 | $8,971.60 | | |
| Oct. 15 | Cheque #41 | $1,525.00 | | |
| Oct. 20 | Banking Fee | $ 15.00 | | |
| Oct. 28 | Debit Memo | $ 9.00 | | |
| 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 corrected this mistake on October 28, 2019 by a bank debit memo of $9.00. This specific error has already been fixed within the month of October and therefore does not need to be accounted for separately in the reconciliation.
Complete the following for the month of October 2019. Follow the format in the 2015 paralegal bookkeeping guide provided to you in pdf format previously on Blackboard.
a Trust Bank Reconciliation,
a Client Trust Listing, and
a Trust Comparison.
What is the latest date that you can complete this Trust Bank Reconciliation?
In regards to the $15,000.00 received by Diane Campo on October 13, 2019;
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)
Explain in detail the following two concepts and the differences between them:
What is a Journal?
What is a Ledger?
Outline the steps you should have taken before the issuance of Cheque #31 on Jane Ditto’s file.