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

• amount received; and
• the total amount banked each day.
The cash payments section of the journal must also be entered in strict numerical sequence from
information recorded on the trust account cheque butts (or duplicates).
Recommended information to be recorded in the cash payments journal includes:
• date;
• cheque number;
• name of person to whom payment was made;
• reason for payment;
• trust ledger reference;
• amount of payment; and
• a subtotal of payments made to any one person on a particular date.
Refer: section 49(6) of the Act
2.7 Trust ledgers
The trust ledger is the centrepiece of the trust accounting system as it summarises all of an agent’s
trust account transactions. The trust ledger must show the details and amounts of the money held
by the agent on their clients’ behalf at all times.
A client trust ledger account must be opened for each settlement.
The bank trust account and the individual client trust ledger accounts must never go
into debit.
Client trust ledger accounts must satisfy the following criteria irrespective of whether they are
produced manually or electronically:
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• individual client trust ledger accounts must show a continuous running balance in order to
disclose each client’s entitlements at any time (it is not sufficient that entitlements can be
calculated or obtained by reference to subsidiary records);
• all transactions must be shown in their correct chronological sequence and the date of each
transaction must be shown (if not done, the amounts recorded in the balance column will be
meaningless and the client trust ledger accounts will fail to show the true position as required);
• the client trust ledger accounts must be updated by close of the next business day;
• where records are maintained electronically, the accounts must be readily convertible into
printed form (the ability to produce a visual image on a screen is not sufficient); and
• all client trust ledger accounts must contain sufficient detail so the nature of the transactions
can be clearly understood.
Each client trust ledger account must contain at least the following information:
• the account number;
• the name and address of an agent’s client;
• the address of the property involved;
• the names of other parties to the transaction;
• the date of each transaction;
• the names of people from whom money was received or to whom money was paid;
SETTLEMENT AGENTS’ TRUST ACCOUNT HANDBOOK