Answer to Question #204923 in Accounting for tetelo

Question

On 18 October 2020, SA Attorneys received a statement from Advocate S Africa to the amount of R1 100. (Advocate S Africa acted as the defence counsel for S Africa in a court case.) This transaction will be entered in the .... as book of first entry.

A. Fees journal

B. Trust cash payments journal

C. Advocates journal

D. Business cash payments journal

Answer 1

Solution:

The correct answer is A. Fees journal.

 

Advocate S. Africa provided professional service as the defense counsel for S. Africa in the court case and hence charged them legal or attorney fees for the service offered.

SA attorneys will, therefore, record the transaction in the fees journal as a book of first entry to capture the attorney or legal fees incurred.