Trust Accounting Learning Module

Introduction and Objectives

The objectives of the Trust Accounting Essentials module are to:
  • help you to understand the requirements of the Law Society Rules with respect to lawyers’ trust accounting.
  • help you to appreciate what to consider when choosing where to bank.
  • learn how to manage your trust accounts, including how trust funds may be deposited and withdrawn from your trust accounts, how to reconcile trust accounts, and how to avoid common trust accounting pitfalls.
If you have not already worked through The Accounting System module, please do so now. The Accounting System module should be completed prior to this module.

Navigating this Module

This module features these components:
Written Material: This module describes how funds should flow in and out of your trust account, what you should consider when choosing a bank and provides some hints to help you avoid some pitfalls relating to trust accounting.
Self-Test: Short questions that offer an opportunity to consolidate your understanding of key concepts.
Test questions are drawn from the written material only and not the Appendices, Additional Resources, or the footnotes to the written material.
Appendices and Additional Resources: Additional valuable resources are available, some of which are included in the Appendices and Additional Resources sections of this module. You are not tested on this additional material, although you are encouraged to review any resources that best suit the nature of your practice or if you experience difficulty comprehending the material that will be tested.
Although we aim to present a comprehensive module, this module is not exhaustive. This module is not a substitute for exercising professional judgment and does not constitute legal advice.
This module was updated in January 2018. As you read through this module, if you find any information that is unclear, inaccurate or outdated, please contact the Law Society.


The information contained in these modules, including references to websites, appendices or links, has been prepared to assist readers as they develop or refresh their skills in the various areas of law covered by the modules. Given the changing nature of the law, readers should exercise their own skill and professional judgment when using the content. Always refer to the most current statutes, regulations, and practice directions, as well as the most recent case law and any other appropriate sources. These materials do not provide legal advice and should not be relied on in any way.
  1. Introduction

  2. Opening a Trust Account

  3. Types of Trust Accounts

  4. Books and Records

  5. Receiving Trust Money

  6. Withdrawing Trust Money

  7. Trust Balances and Shortages or overdrafts

  8. Reconciliation

  9. Reconciliation (continued)

  10. Interest on Trust Accounts

  11. Trust Account Reports

  12. Investigations and Audits

  13. Unclaimed Trust Funds

  14. Notice Upon Closing a Trust Account

  15. Some Final Advice and Suggestions

  16. Some Final Advice and Suggestions (continued)

  17. End of Lesson