How to set up credit card returns

[Maf. King]

On Tuesday 31 Jan 2012 23:00:17 dad wrote:
>     I am new to gnu cash program.  Have been able to figure out how to use
> the program.  My question: When you make a credit card transaction and
> record it.  Then you return the item you used the credit card on.  What do
> you enter in the transfer column for the credit card liability return?  Do
> you have to make a new account for this type of transaction?   Here is
> what I tried.  Made a new account under expense titled expense return.  It
> show up in red. In real time the credit card is a liability  and when I
> pay it off that is deductible from my assists.  But when I make a charge
> to the card and then get a return to the card.  It is not an assist and
> really no money has exchanged for my accounts until I send in  payment.
> Plus it should not add to my income as it was really not spent from my
> income.  Thereby not effecting my total worth.  Need suggestions as I have
> no accounting training. Thank you for your time and consideration.
> 


Hi Don,

I record the transaction as a "negative expense".  so for example, I buy some 
clothes which cost £50, but then try on one of the shirts at home and find a 
fault - eg missing buttons, and decide to return it to the shop who refund me 
£20.

I spend £50 on card and transfer to expense:clothes
I get a refund of £20 to the card, and transfer from expenses:clothes.

Total in expense:clothes £30, (as in real life)

This is for personal accounting in the UK, your local tax rules may proscribe 
something different, especially for businesses. IANAA!

HTH,
Maf.