What's the best way to record this?

[Colin Law]

On 3 January 2011 16:55, FireFly <fireflys_98 at yahoo.com> wrote:
> --- On Mon, 1/3/11, Ian X Waddington <iwaddox at gmail.com> wrote:
>> To expand on this, what should you do
>> with an expense that is refunded
>> because you return something to the store.
>>
>> If I paid £50 for a new coat on my credit card against
>> expenses clothing
>> then a week later I returned the coat I would simply enter
>> an identical
>> transaction with the signs reversed - wouldn't I, how else
>> should I do it?
>>
>> I see this as the same as for the short term loan
>> question.
>
>
> I'll agree and disagree, you can deal with them the same, however I presume when you purchase something from the store you don't intend to return it, so as such it's an expense, then when you return it, the expense goes away.
>
> Short term loans are never expenses, you would expect it to be returned, having said that I think I deal with them the same way, but this is my personal accounting and I'm hecka lazy.

In addition, for the case in point, buying something for a friend, you
might buy it on a credit card and get re-paid in cash.

Colin