Payable control a/c question - refund from suppliers

lightspeed

Hi I have an upcoming exam in financial account and im just going over receivables and payable control accounts.

Unfortunately, i missed the lecture on it but i think i understand them mostly from the notes.

However, i dont understand why if a refund is received from a supplier, it is shown on the credit side of the payables control account?

My understanding is that the left hand side contains all transactions which lower the payables and the right all which increase it such as purchases.

if i get a refund should it therefore not be on the debit side of the payables control account?

rabbit123

Accounting basics. when it comes to money, debit the receiver and credit the giver.

So if you receive refund from suppliers/ creditors.

Dr: Cash/ Bank

Cr: Suppliers Control A/C

for example you found out that some of the goods received were damaged or not up to the quality so you made a claim or something like that. Therefore the suppliers owe you that amount. Therefore,

Dr: Supplier or Payable Control A/C
Cr: Purchases A/C

and when you receive the refund, you would do the first entry.

Hope it makes sense.