How to you make entries for expenses balance or cash refund
For a refund to a customer
If your business invoices customers and allows them to purchase on credit see this guide
Credit Notes: Use credit notes for customer returns and refunds
If your business does not allow customers to buy on credit (all cash sales)
- enter a receipt but ensure you select a customer to ensure your total sales for the period are reduced by the refund
I mean Incase of expenses how do we treat it
You enter either a purchase invoice or a payment. Post the line items to appropriate expense accounts.