There are standard transactions made with trust accounts. Research and give a brief explanation of the following standard transactions (20-30 words for each dot point)
Entries to: Journals
General Journal Entries: Record all transactions affecting trust accounts, including deposits, withdrawals, and interest earned, ensuring accurate tracking of funds and compliance with legal requirements.
Cash Receipts Journal: Document all incoming funds to the trust account, detailing the source, amount, and date of each transaction for transparency and accountability.
Cash Disbursements Journal: Capture all outgoing payments from the trust account, specifying the recipient, purpose, and amount, to maintain a clear record of expenditures.
Adjusting Entries: Make necessary adjustments for accrued interest or fees related to the trust account, ensuring the financial statements reflect the true financial position.
Closing Entries: Finalize the accounting period by transferring balances to the appropriate accounts, ensuring that the trust account reflects accurate year-end figures for reporting.