A Perth agency receives $3,000 in cash as a sales deposit on a Thursday. Under WA trust accounting practice, how should it bank the money?
Correct Answer
A) By close of business on Friday where practicable, banked as cash
Consumer Protection WA's trust account handbook sets out the basic principle that trust money is banked by close of business of the next working day where practicable, and in the same form in which it was received, so cash received is banked as cash. All money paid to an agent in trust must be held in the agent's trust account with an authorised financial institution.
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