How to record a refund, given or received
A refund moves money back through the bank. Post a refund to a customer and one from a supplier, and tell a refund from a credit note.
Task 1Money back to a customer2 questions
A customer paid at the till for a drill. It is faulty, so Holt Hardware refunds £85 to the customer's card from the business bank account. Ignore VAT in this room.
The sale is reversed into its own account, Sales returns, so Sales still shows everything sold. The money leaves the bank.
- Refund to a customer who has paid
- debit Sales returns, credit Bank
Task 2Money back from a supplier2 questions
You post entries to T-accounts and pick the right answer.
Task 3Refund or credit note3 questions
You sort items into the right place, work out a figure and find the mistake in a table.