487 / 736
record of expenses of the practice for the
previous month and cumulatively from
the beginning of the financial year to
gether with costs
furnished for
the
previous month and cumulatively. The
costs are shown under two heads.
(a) As furnished (columns 3 and 4).
(b) As calculated on a time cost basis
(columns 5 and 6).
This shows the relative profit or loss of
different types of work.
Offices participating in this exercise will
be supplied with the OYEZ TWINLOCK
TIME RECORDING SYSTEM. Repeat
orders of stationery may be ordered from
the Solicitors' Law Stationery Society,
London.
APPENDIX 1
TIME COST FACTOR
(1275
hours p.a.)
EXAMPLE
Fee earners
(1)
Principal's notional salary (earnings)
(2)
Assistant solicitor actual salary
(3)
Clerk, actual salary
...
£4,000
£2,000
£1,500
Fraction of
total
salaries
of fee earners
4,000
7,500
2,000
7,500
1.500
Total earnings and salaries of fee-eatners
(4)
General overheads from last accounts (Salaries of non-fee
earners and all other overheads not included as disbursements
in bill costs
£6,500
Adjusted for subsequent increased expenses
£500
(5)
Total salaries and overheads to be allocated to fee earners in
proportion to their salaries.
Allocation of item (5) between fee earners
Principal
(1)
14500
4000
7500
Assistant
(2)
14500
x
2000
7500
Clerk
(3)
14500
x
1500
7500
£7733
£3866
£2900
£14499
£7,500
£7,500
£14,500
£14,500
Time
cost
factor
(1275
hours
7733
1275
= 12750 units)
£6
1
4
12/2d. per unit
3866
1275
2900
1275
£308
6/ld. per _
unit
5
6
4/6d. per
unit
33