Accounting for IGCSE & O level - Accounting Procedures (Section 9 - No. 15)
What would be the appropriate journal entry if a supplier gives a refund?
Debit Trade Payables, Credit Bank
Debit Bank, Credit Trade Payables
Debit Purchases, Credit Trade Payables
Debit Trade Payables, Credit Purchases
Explanation
The journal entry would debit Trade Payables (reducing the amount owed) and credit Bank (reflecting the cash received).
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