All 25 Control Accounts questions
More in Control Accounts
What is the effect of a discount allowed on the control accounts? How is a bad debt written off reflected in the sales ledger control account? How do dishonoured cheques appear in the sales ledger control account? What is teeming and lading and how do control accounts help detect it? Which errors affect the control account and which affect the list of balances? How is a contra/set-off recorded in the control accounts? How do you prepare a sales ledger control account from incomplete information? How would an overstatement of the sales day book affect the control account reconciliation? How do you prepare a purchases ledger control account to find missing credit purchases? How does an omitted discount received affect the PLCA reconciliation?
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How is refund to a customer shown in the sales ledger control account?

Intermediate

Answer

A refund paid to a customer (e.g., for an overpayment) debits the sales ledger control account (increasing/ restoring what is effectively receivable or clearing a credit balance) and the customer's account, with the credit to bank. It reflects money going back out to the customer.
Refund 100: Dr Sales Ledger Control 100; Cr Bank 100.
Real-world example Refunding an overpaid customer debits the control account and credits the bank.

Common follow-ups: Which side records the refund? | What is the corresponding credit?

Cash Book & Petty Cash Sales & Purchase Ledgers Control Accounts
All 25 Control Accounts questions