Prescribed account deposit calculation tool
17 January 2011
A new Queensland Law Society calculation tool helps law practices calculate their Prescribed Account Deposit, due on or before 21 January each year.
All the law practice is required to do is ascertain for each month, the day of the month on which the law practice held the lowest amount of trust money and enter the relevant amounts (the bank statement balance and the Prescribed Account balance) in the spreadsheet.
The spreadsheet contains formulas that will automatically calculate:
- which of the twelve months was the month with the lowest balance;
- the amount required to be held in the Prescribed Account; and
- the amount required to be deposited or withdrawn to adjust the Prescribed Account Deposit to the required amount.
It is recommended law practices record the relevant bank statement and prescribed account balances each month as part of the end of month trust account reconciliation process. This will mean that in January of each year the information required will be readily available.
Deposit requirements for the Department of Justice & Attorney-General Prescribed Account are set out in Section 5 of the Deposits to the Prescribed Account.