Trust account handbook - Department of Commerce - wa.gov.au

PART 2 TRUST DOCUMENTS AND RECORDS
The role of trust documents and records, as well as the prescribed requirements, are explained
in this section. Where needed, a model that meets the requirements of the Act is shown. It should
be understood, however, that models serve only as examples. While legislation prescribes
the information that must be recorded, it does not prescribe the way that information must be
presented.
2.1 Principles of trust account practice
While it is impractical to summarise good trust account bookkeeping practice in a few sentences,
the following broad principles apply:
• documents are completed immediately;
• records are written up by the end of the next business day;
• trust money is banked by close of business of the next business day (unless the Act allows
otherwise) and in the same form it was received (eg cash received must be banked as cash);
• records of all transactions are kept and transactions with no documentary evidence are
recorded in the transfer journal;
• reconciliation statements, prepared at least monthly, are completed accurately and on time;
• fee entitlements are not deducted from the trust money until after settlement;
• each client must have a separate trust ledger account and each individual trust ledger account
should never go into debit;
• agents with computerised accounting systems maintain records in a manner that can be
conveniently and properly audited (auditors can advise which documents must be provided in
hard copy); and
• back-up computer records are kept offsite.
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2.2 Trust receipts
Trust receipt process
When trust accounts are kept manually and payment is made in person, a receipt must be
provided to the person at the time of payment. A duplicate, marked as such, must also be retained.
If a computer system is being used, a printed receipt needs to be issued and a record of the
transaction maintained. If a payment is made by cheque through the mail, the receipt should be
provided as soon as possible. A receipt does not have to be issued if the money is received by
electronic transfer, however, a record of the money received must be kept (ie a copy of the deposit
slip or bank statement).
Trust account receipts
It is a requirement that all trust receipts show the following information:
• the name of the holder of the triennial certificate, and the business name of the holder, that is
recorded in the register;
• a number or letter, or a combination of both, in consecutive order to allow the receipt to be
uniquely identified;
• the date the money was received;
• the name of the person paying the money;
SETTLEMENT AGENTS’ TRUST ACCOUNT HANDBOOK