Description
Legal Practice Management
- Clearly explain the usefulness of accounting to practicing advocates (5 Marks)
- The following is a trial balance extracted from the books of Otieno and Kioko, a firm of practicing advocates as at 31 October 2012:
Otieno and Kioko Advocates
Trial balance
As at 31 October 2012
| Sh. | Sh. | |
| Capital account | 204,000 | |
| Disbursements on behalf of clients | 12,000 | |
| Drawings | 60,000 | |
| Salaries | 72,000 | |
| Rent and rates | 60,000 | |
| Printing and stationery | 35,000 | |
| Postage and telephone | 18,000 | |
| Costs charged to clients | 250,000 | |
| Work in progress on 1 November 2011 | 36,800 | |
| Clients: for the moneys held on their behalf | 24,800 | |
| Creditors | 27,200 | |
| Debtors | 78,000 | |
| Sundry office expenses | 8,500 | |
| Furniture, fittings and library books Cash at bank: | 45,000 | |
| Clients’ account | 24,800 | |
| Office account | 55 700 | |
| 506 000 | 506 000 |
Additional information:
- The uncompleted work on 31 October 2012 was valued at Shs.23,500 e It is estimated that debts amounting to Sh. 5,500 are uncollectible and should be written off.
- Depreciation should be provided at 20% per annum on the book value of the furniture, fittings and library books
Required:
| (i) Income and expenditure account for the year ended 31 October 2012. (ii) Balance sheet as at 31 October 2012. | (5 marks)
(5 marks) |
ATP 106 Legal Practice Management Nov 2013-1-2
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