Refunds received from supplier

A refund is simply a repayment of cash. When we pay the supplied we credit cash and debit payables. If the supplied gives us back some of the cash (because, for example, we paid too much by mistake) then we debit cash and credit payables. This is explained in my free lectures on control accounts. My lectures are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.