If a CA in practice receives money from his client and the same is kept in the current account of the profession, then will this constitute a misconduct ? and why ?

1 answer

Ravi Staff May 4, 2018

if money is for fees / expense to be incurred in short term then its fine to keep it in current account of firm.
if money is for any other purpose investment , payment to others , to be given back to client / for expense to be incurred in long term then it should be kept in seperate firm account only which is specifically for all clients and no it regular, common current account of firm from where expenses and drawings are met.
this is as per S1 P1 Cl10
logic is simple client money other than fees and short term expense should not get utilised in firm regular expenses and drawings


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