What is the best way to refund expenses?

[Tut]

@raJ

I haven’t used the expense claim program.

Read about expense claims here. They are designed explicitly for the situation you describe:

Use expense claims

Expense claims record expenses incurred by people on behalf of the business. These can be of two types: Actual expenses paid with personal funds that, in other circumstances, could have been paid directly with company funds and posted to appropriate accounts. Examples include: travel expenses for company business charged to an individual’s credit card, cash purchases of office supplies, or materials bought locally out of pocket on an emergency basis to finish work at a customer’s site. All…

@raJ

should I credit motor vehicle expenses for gasoline expense and debit my cash account for adjustment providing a narration as refund?

Yes. Take note, though, this cannot happen via a journal entry. You should Receive Money in the Cash Accounts tab. And you cannot simply make the entry. You must actually put back the money.