Law Society of Ontario (LSO) Paralegal Practice Exam

What is one of the primary documents required for maintaining a General Account?

1. Pleadings log

2. General disbursements journal

3. Client correspondence file

4. Daily diary

The correct answer is: General disbursements journal

Maintaining a General Account is a crucial aspect of financial management for paralegals and legal professionals. The General disbursements journal serves as a primary document because it is specifically designed to track all financial transactions that occur in the General Account. This includes recording expenses such as fees, reimbursements, and other disbursements made on behalf of clients. The journal ensures transparency and accountability in managing client funds, which is essential for compliance with regulatory requirements. It allows for easy reference and auditing of financial activities, which is vital in case of a financial review or investigation. Proper documentation in the General disbursements journal contributes to the overall financial integrity of a paralegal’s practice by ensuring all transactions are accurately recorded and can be easily accessed when needed. Other options, while they may play a role in the broader context of case management and financial oversight, do not fulfill the specific requirement for maintaining a General Account in the same manner as the General disbursements journal. For instance, a pleadings log primarily tracks legal documents and filings, while a client correspondence file organizes communication with clients. A daily diary could help in time management and task tracking but is not directly linked to financial documentation like the General disbursements journal