Calculation of Prescribed Account deposit when there is an existing deposit?
If a law practice has an existing deposit with the prescribed account, it is unlikely that the amount deposited in the previous calendar year would have been the same throughout the entire year. If we assume that the law practice increased the amount deposited to the prescribed account on 16 January in the previous calendar year, the law practice will need to proceed in the following manner to determine the lowest combined balance held in that year:- • determine the lowest approved ADI statement balance during the period from 1 January to 15 January and add the amount of the prescribed account deposit during that period to determine the lowest combined balance held on any day during that period from 1 January to 15 January; • determine the lowest approved ADI statement balance during the period from 16 January to 31 December and add the amount of the prescribed account deposit during that period to determine the lowest combined balance during the period from 16 January to 31 December;
