What Accounts Are Affected When Company Sends Cheque To Customer?
When the company / corporation received the payment more than the payment written on unpaid invoices from customer / client, then the company needs to refund this amount to its customer. It creates a Current Liability i.e., refund payable account as the company is liable to pay to customers any amount in excess of unpaid dues. Suppose, the refunded amount is $150. When the company sends cheque / check to customer, the following journal entry is recorded in the Books of Accounts as shown below: Refund Payable a/c $150 Cash a/c $150 (Send A Cheque To Customer ...