314 Arrangement of Solicitors' Business and Plan of Accounts. under the care of principals betrays great put their initials on each letter. One of negligence. the clerks, under the direction of a prin2. Diary of Appointments and Short cipal or a managing clerk, to be answerable Notes of Business done :-Each principal for the letters being submitted to, and and the chief clerk in each department to marked by the partners day by day. keep a diary containing his daily appoint- Letters should be indorsed, when an ments. In this diary a very short entry swered, with the names of parties, the business to which they relate, and their dates, and put away with the papers con (by way of key to a charge in his business book) to be made of the name of the client and of any business done for him, the mo- nected with them. Letters not having ment the client has left the office, or in the papers connected with them are put away evening or morning, or as soon as possible, yearly with the other papers and arranged so that there may be no omission or for- in their bundle and according to their getfulness. This key is of the greatest dates. importance, being (though slight) the foundation of all subsequent entries. 3. A Business-book to be kept by each principal and each clerk, in which every business done or attendance made should be entered, with full particulars and with the result every day, or as soon as possible, for the sooner done the better will be the recollection to make the charge. To omit this duty is pregnant with loss to the concern, and cannot be justified. The entries in this business-book will be a chronicle of events and of what has been done, which may at all times afterwards be safely resorted to for information. The business book of each clerk will contain the cash received and disbursed by him. As many businesses occupy a great deal of time in the perusal and arrangement of papers and otherwise, it is important to enter in a column in the daily business-book of each principal or clerk the time occupied by any business, so as to regulate and justify the charge to be made. 5. A Day-book to be kept, in which should be entered under the head of each client's name all the business, &c., done for him, as entered in the business-book, with" the time employed by the clerk in doing it and if there be more businesses than one ! for each client, a distinct head in the daybook should be opened for each business by the name of the client. By this means all matters that relate to each business of a client will be kept together. The entries may either be turned into a bill, if practicable, or the bill may be drawn out from the entries. Before the drawing of which bill the entries in the day-book are to be gone over and numbered in the order in which they should be charged. When bills are drawn out and copied and completed, the drafts of the bills are put away, being first indexed in a book kept for the purpose, or the drafts may be bound together as they may be copied, or any particular bill might be copied into a bill-book. 6. A Bill Register.-Book to be ruled with columns, to be made up and posted The necessity for each principal and every half year, and occasionally when neclerk to have a business-book is very cessary during the half. This book is to apparent, as it affords a facility in making contain a complete list of all clients for the requisite entries which might otherwise whom business may have been transacted be impeded and delayed and the charge during the half-year, which list should be lost, if all parties were to make their taken from the day-book." At the end of entries in the same book, and consequently to wait for one another. In the weekly report of the time, up to which the business book and disbursement book of each clerk is completed, a note should be added, whether or not the time employed upon any business is inserted regularly in the clerks' business book. 4. Letters. When a letter is received there should be an entry made upon it of the department to which it refers, and the clerk in that department is answerable for its heing attended to and answered, The principals should read all letters, and to prove that they have done so should each year a new and complete list embracing the past year, so far as concerns bills not delivered, to be made up in order, that the arrears may be clearly seen. 7. A rough General Cash-book and fair General Cash-book to be kept, in which should be entered all cash received and all' cash paid-those receipts and payments' which are on account of clients to be carried to the debit or credit of the clients' accounts in the ledger-those payments which are on account of business or of management found at the conclusion of these remarks, see Directions for making out a bill will be page 316. Arrangement of Solicitors' Business and Plan of Accounts. 315 to be posted to the accounts of the respec- ture and amount of the debt or charge in tive parties to whom they are paid, and respect of which a payment has been made. from thence those that relate to business The payments on account of business and to be carried to the debit of "Business those on account of management to be also Disbursement Account," and those that re- carried to the debit of Business Disburselate to management to "Management ments' Account, or Management Charges" Charges' Account" or "Charges' Account." Account, respectively. This cash-book will show the balance in 11. Profits or Balance book to be kept, hand or at the bankers, and will be ex- in order to ascertain and show as nearly as amined with the postings in the ledger circumstances will admit at the end of every every week or month. year, the profits of the business done during the year. In this book, the following accounts should be entered, viz.: an account to be opened, commencing in April in every year, and ending in the same month, to be headed The cash-book is to be so kept as to be a counterpart of the banker's account by having separate columns for cash paid into, and cash drawn out from, the bankers. which bills have been sent in. At the end of the year make out (or complete such as have SA General Disbursement-book, in which are to be debited all sums issued "Business done Account."-In this account, from the general cash-book on account of when a bill is sent in for business done in the petty cash, and to be credited all the charges current year, the amount of the bill is to be and disbursements paid through petty cash, charged in the ledger to the clients' account, whether for management or on account of and then credit to be given for the amount, business. Each clerk will have his petty quoting in either account the folio of the other. cash disbursement-book, the contents of This "Business Account," will, in the end of which will be the materials for the general the year, record all the business done, for disbursement-book, and will be entered accordingly and posted from thence into been partly made out) all bills which have the day-book, excepting that the charges not been made out, and consequently not of management do not go into the day- sent in or charged to the client; then by addbook, This general disbursement-book is ing up the amount of all the draft bills for to be balanced half-yearly (the clerk's business done during the year which have book being balanced weekly), by deducting not been delivered, an estimate may be made the amount of disbursements for the half of their amount, and instead of debiting the year from the amount of the sums debited as received from the general cash, and the result then carried to an account in the ledger, entitled "Petty Cash"-and the balance of cash, if any, not repaid to be transferred to the account of the individuals from whom they are due. If a principal, to the debit of his account in the private ledger-if a clerk, to the debit of his account, and also to the debit of Managementcharges' Account, and the amount of disbursements to be carried to the debit of Business Disbursements' Account. client's account in the ledger, carry the esti mated amount of each client's bill to the debit of another account to be opened in the same "Profits'" book. the "Business done Account" will then ex Such account to be entitled " Unfinished Bills' Account." When this is so debited, then enter the amount to the credit of the "Business done Account" for the same year, and hibit the gross amount of all the bills for all the business done in the year. Subsequently, as the bills which have been so estimated are sent in to the clients, debit the client's account in the ledger with the amounts, and also credit the amounts in the account of bills not sent in, 9. A. Stationer's-book, to be kept, and or "Unfinished Bills' Account." After all such the entries therein checked and posted into estimated bills shall have been delivered and the day-book, and the amount of each debited in the ledger, and credited in the having been credited in the Dr. and Cr."Unfinished Bills' Account," the alterations of account opened with the stationer in the of the charges or otherwise subsequently to amount in any such bills, arising from revision ledger to be debited to the Business Disbursement Account. year the end of the year when the estimate was made, will then result in an increased or decreased amount of profit upon the account of bills not sent in affecting, and having ultimately to be carried to, the general profit account for that year. D In the same book of "Profits" another ac 10. A General Ledger to be kept, which should be in part a transcript of the cashbook, by having a Dr. and Cr. account with every individual, from or to whom moneys are received or paid, with the addition of a count should be opened in each year, to be debit in each client's account of the amount entitled." Business Disbursements" Account." of any bill delivered, and of a credit in the In this account should be charged all disaccount of any other person or of the na-bursements relating to business which shall 316 Arrangement of Solicitors' Business and Plan of Accounts. have been paid out of the general cash and ledger. An account current, therefore, entered in the cash-book, and posted in the proper to be rendered to the client should ledger. To these disbursements should be be made up in the Account Current Book added the amount of the stationer's account, and a copy rendered to the client, so that and of the disbursements entered in the gene- the statements or account current, as renral disbursement book for the year, and thus will be shown the total of the disbursements in respect of the business recorded in the two preceding accounts to have been done. dered, may always be known, but this account current should include all cash received, and all cash paid, to prevent the In the same book of "Profits" another ac- executors of a client, or the client alleging count should be opened for each year, entitled moneys to have been received which were "Management Charges' Account," in which not credited, and which might occasion unshould be charged all sums as they are paid pleasantness and trouble in bringing forward in respect of management out of the general and showing vouchers for the payments in cash and posted into the ledger. discharge of the moneys so received. When these accounts have all been completed, then close "Business Disbursements' 13. A Private Ledger to be kept in Account," by transferring the amount to the which shall be entered the Dr. and Cr. debit of Business done Account," the ba- accounts to each partner, the one containlance of which will show the net amount ing his capital account, and the other his of business done, minus the cash out of pocket drawing account against profits, the money in respect of such business. Then also close drawn is entered in the cash-book, and the "Business done Account," by a transfer to another account to be opened in the same posted from thence to the drawing account. book, and to have reference to the same year, The drawing account is credited with the and to be entitled "Profits and Loss Account." proportion of anticipated profits of each Having done that, close also the "Manage- partner, until a final and actual amount of ment Charges' Account" by a transfer to profits be ascertained, and when the profits "Profits' Account," also close any interest are ascertained then the respective accounts account there may be by a like transfer to the of the partners are debited or credited with any proportion of the profits beyond or not equal to the anticipated profits." debit of "Profits' Account." Then the "Pro fits' Account" will show clearly in a few items the net profit upon a year's business subject to the realisation of bills not paid. The balance of the "Profits' Account" should then be struck, and brought down with an explanation, that it is the profit subject to any deficiency that may afterwards arise, either from revisions of bills charged in the "Unfinished Bills' Account," or from bad debts, or from relinquishments, or taxations, or otherwise. For the purpose of showing what deficiencies are to be charged against this balance of "Profits' Account," there should be opened in the same book an account to be entitled "Bad Debts and Relinquishments," in which should be debited all such outstanding debts as may from time to time be ascertained to be bad, or as may have been either wholly or in part relinquished; this account to be ultimately closed by a transfer of the account to "Profits' Account." In the Profits' Book or Balance Book should be entered an account headed "Balances' Account," by which the result of the ledger entries will be shown, thus the balance due to each partner, or to any other person, together with the amount of bills remaining due to the firm, will form the credit side of the account, and the debts due from other persons to the firm, together with the profits of the partnership and the balance of cash at the bankers or in hand, will form the debit side of the account. 12. An Account Current Book should be kept. When an account is rendered to a client it may not be necessary to send him all the entries in the account in the We lastly add the following directions for making out Bills : : 1. Examine whether any former bill has been made out in the same business, or to the same party, and if so thoroughly understand the same. 2. Ascertain by search if any draft bill has already been prepared, and if so add to, amend or alter such draft, or begin de novo. 3. Inspect all the entries in the day-books from first to last. 4. Collect all the papers together, and understand the leading points of business. 5. Arrange the papers according to their dates, and indorse their contents, if not already done. 6. Look up and examine all letters written to and by the firm. 7. Arrange all the letters according to their dates, and indorse the names of the parties from whom they came, the dates, and heads of their contents. 8. Then begin the bill making charges fuller (if necessary) than the entries, and draw the bill on draft paper bookwise, with a small margin for binding. 9. If the bill relate to Chancery business look for a precedent in the Chancery costs, and read the charges therein, from beginning to end. 10. If in any of the Common Law Courts, the like. in similar business, and read them through11. If in Bankruptcy look to bills made out out. New Statutes effecting Alterations in the Law. 317 The new duties by this Act granted to be denominated stamp duties, and to be under the care of Commissioners of Inland Revenue; powers and provisions of former Acts to be in force; s. 2. 12. If in going through a bill there should Acts, repealed, and the duties named in be any blanks for folios, or any queries, put said schedule granted in lieu thereof; s. them on a sheet of paper and annex it to the draft to be filled up, and answered before the 1. bill is considered as drawn. If the bill relate to different suits, &c., keep each distinct. 13. In drawing a bill see that the history or chain is preserved throughout, so that on reading it, the nature of the business, and what has been done may be clearly seen and understood, but be cautious so that the charges or statements do not cast blame or excite any improper remarks on any one. 14. In charging for letters, be particular in stating their contents shortly, and if from their contents it should appear that attendances must have been had or business done which may not have been posted, supply them, noting in the draft that the attendances or business are not in the day-books. 15. In charging an attendance on any busi ness, look to the consequences of such attendance or business, or whatever follows from the one or arises from the other, and take care to include the same, although the entries may be silent or incomplete, but noting as in the last article. 16. Let the papers be put away and indexed (in the register of papers) when the bill is made out, and let all papers taken out of a bundle already indexed, be returned to the bundle when done with. Duties on bills drawn out of the United Kingdom to be denoted by adhesive stamps; s. 3. Bills purporting to be drawn abroad deemed for the purposes of this Act to be so drawn; s. 4. The holder of a bill drawn out of the United Kingdom to affix an adhesive stamp thereon before negotiating it; penalty for negotiating such bill without a stamp affixed or neglecting to cancel such stamp; s. 5. Penalty for drawing and issuing, or transferring or negotiating bills purporting to be drawn in a set, and not drawing the whole number of the set; penalty on taking or receiving such bills; s. 6. circulated beyond 15 miles of the place Unstamped drafts on bankers not to be where made payable; penalty on persons offending; s. 7. Drafts lawfully issued unstamped may by NEW STATUTES EFFECTING ALTE-gotiated beyond the distance of 15 miles; affixing thereto an adhesive stamp be neRATIONS IN THE LAW. THE Acts of the present Session printed in 254. Commons' Inclosure (No. 2), c. 48, p. 254. s. 8. Provisions of 17 Geo. 3, c. 30, as extends to drafts on bankers repealed; s. 9. Adhesive stamps denoting the duty of 1d. may be used for receipts or drafts without regard to their special appropriation; s. 10. What shall be deemed bank notes within the meanings of 7 & 8 Vict. c. 32, and 8 & 9 Vict. cc. 38 and 37; s. 11. All bills, drafts, and notes deemed bank notes under the above recited Acts liable to stamp duties, &c.; s. 12. Exemption from receipt stamp duty of letters acknowledging receipt of bills, &c., repealed; s. 13. Receipts for money paid to the Crown exempted from stamp duty; s. 14. 13 & 14 Vict. c. 97; 16 & 17 Vict. c. Turnpike Trusts' Arrangements, c. 51, p. 276. 63; Relief to persons who have made du Admiralty Court, c. 78, p. 295. 71, p. 298. Acknowledgment of Deeds by Married Women, c. 75, p. 299. STAMP DUTIES. 17 & 18 VICT. c. 83. Stamp duties on instruments mentioned in schedule to this Act, payable under other plicates of described in 16 & 17 Deeds made for several valuable considerations to be chargeable in respect of each; s. 16. Commissioners of Inland Revenue, before assessing the duty upon any deed, may require proof that the facts upon which the duty depends are truly stated; s. 17. 318 New Statutes effecting Alterations in the Law. The affidavit not to be used for any other and directions therein contained, shall be purpose; s. 18. 48 Geo. 3, c. 149; indemnity from penalties for omitting to state the full purchase-money in assignments on the sale of goodwill; s. 19. Stamp duty on licences to pawnbrokers in Dublin reduced; s. 20. Contracts to serve as artificers, servants, &c., in the colonies exempted from stamp duty; s. 21. Public maps and documents not to be liable to stamp duty by reason of their being referred to in deeds or writings; s. 22. Leases for a period less than a year to be chargeable with stamp duty on the rent reserved; s. 23. Allowance on the purchase of stamps not exceeding the rate of 1s. duty for drafts, bills, and notes; s. 24. No charge to be made for paper on sale of bill or note stamps where the rate of duty does not exceed 18.; s. 25. Allowance for stamps rendered useless by this Act; s. 26. Instruments admissible in evidence, though not properly stamped; s. 27. deemed and taken to be part of this Act, and shall be applied, observed, and put in execution herein contained shall extend to repeal or alter accordingly provided always, that nothing any of the said stamp duties now payable in relation to any bill of exchange, promissory note, or other instrument which shall have been drawn, made, or signed, or which shall bear date before or upon the said 10th day of October, 1854. 2. The said duties by this Act granted shall be denominated and deemed to be stamp duties, and shall be under the care and management of the Commissioners of Inland Revenue for the time being; and all the powers, provisions, clauses, regulations, directions, allowances, and exemptions, fines, forfeitures, pains, and penalties contained in or imposed by any Act' or Acts or any schedule thereto, relating to any duties of the same kind or description heretofore payable in Great Britain and Ireland' respectively, and in force at the time of the passing of this Act, shall respectively be in full force and effect, with respect to the duties by this Act granted, and to the vellum, parchment, and paper instruments, matters, and things charged and chargeable therewith, and to the persons liable to the payment of the said duties, so far as the same are or shall be applicable, in all cases not hereby expressly provided for, and shall be observed, applied, allowed, enforced, and put in execution for and in the The following are the Title and Sections raising, levying, collecting, and securing of the said duties hereby granted, and otherwise in relation thereto, so far as the same shall not be superseded by and shall be consistent with the express provisions of this Act, as fully and ef fectually to all intents and purposes as if the same had been herein repeated and specially enacted, mutatis mutandis, with reference to the said duties by this Act granted. 3. The duties by this Act granted in respect of bills of exchange drawn out of the United Kingdom shall attach and be payable upon all such bills as shall be paid, indorsed, transferred, or otherwise negotiated within the United Kingdom wheresoever the same may be payable, and the said duties shall be denoted by adhesive stamps, to be provided by the Commissioners of Inland Revenue for that purpose, and to be affixed to such bills as hereinafter directed. 1. From and after the 10th day of October, 1854, the stamp duties now payable in Great Britain and Ireland respectively, under or by virtue of any Act or Acts of Parliament for or in respect of the several instruments, matters, and things mentioned or described in the schedule to this Act annexed, and whereon other duties are by this Act granted, shall respectively cease and determine, and shall be and the same are hereby repealed; and in lieu thereof there shall be granted, charged, and paid in and throughout the United Kingdom of Great Britain and Ireland, unto and for the use of her Majesty, her heirs and successors, upon and in respect of the several instruments, matters, and things described or mentioned in 5. The holder of any bill of exchange drawn the said schedule, or upon or in respect of the out of the United Kingdom, and not having a vellum, parchment, or paper upon which any proper adhesive stamp affixed thereon as hereof them respectively shall be written, the in directed, shall, before he shall present the several duties or sums of money specified and same for payment, or indorse, transfer, or in set forth in the said schedule, which said sche-any manner negotiate such bill, affix thereon a dule, and the several provisions, regulations, proper adhesive stamp for denoting the duty 4. Every bill of exchange which shall purport to be drawn at any place out of the United Kingdom shall for all the purposes of this Act be deemed to be a foreign bill of exchange drawn out of the United Kingdom, and shall be chargeable with stamp duty accordingly, notwithstanding that in fact the same may have be drawn within the United Kingdom. |