Lawyers do it by setting up a parallel ledger for each order on each client/customer, and put the money into it; this is called a 'Trust Account'. The Trust Account is per customer/client, generally but may be allocated to a job/order specific only, ie specific order to be completed in the future. Lawyers are not entitled to draw down on a Trust Account for which the money was not originally given for that purpose. This is absconding of funds.
In the world of non lawyers there is generally just a global credit account to the client to be drawndown on any deal, purchase of goods or services; and the money has been traditionally deposited into the general corporate (operating) account. The Lawyer cannot be put the deposit into that general account, because he has not yet earned it; thus it must be put into a Trust Account with separate Bank Account Number to force a segregate of the money paid to the lawyer for services rendered/goods delivered, and for those to be purched in the future.
REASON:
There is likley a possibility that the order for goods cannot be completetd and same with services; thus that Trust portion must be returned even if there are other accounts receivable by company from customer, as company is a Trustee in law, just like a Bank.etc.
Now with ENON, I believe you may see more separation of commingled funds to protect the proposed purchaser of goods and service and the creditors and the investor if it were a public company. phil cleve
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