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arash-noghani's avatar
arash-noghani
User
4 years ago
Solved

How to record a transaction that was paid wrongly to someone

Hi there,   We have mistakenly paid a deposit for a non-business stay at hotel, using the business credit card.The deposit amoount is refunded to by the hotel within 2 days. What is the best way to...
Banking
  • Tracey_H's avatar
    Tracey_H
    4 years ago

    Hi arash-noghani 

     

    Thanks for your post. Since there'll be a withdrawal and deposit for the same amount, effectively clearing each other out, I'd allocate the transactions to a suspense type account. So for the withdrawal record a Spend Money with the Pay from account as the credit card account and allocated to the suspense account. And for the refund record a Receive Money with the Pay from account as the credit card account and allocated to the suspense account.

     

    However, if you're not sure about this I would recommend checking with your accountant.

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Tracey_H's avatar
Tracey_H
Former Staff
4 years ago

Hi arash-noghani 

 

Thanks for your post. Since there'll be a withdrawal and deposit for the same amount, effectively clearing each other out, I'd allocate the transactions to a suspense type account. So for the withdrawal record a Spend Money with the Pay from account as the credit card account and allocated to the suspense account. And for the refund record a Receive Money with the Pay from account as the credit card account and allocated to the suspense account.

 

However, if you're not sure about this I would recommend checking with your accountant.

 

Please let me know if you need further help.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.