A customer returns a pair of trousers she bought for £35 using a  credit card. She has a receipt showing when she made the original  purchase. The rate of VAT is 20 per cent. How would you record this  transaction ?

On 15 December, Jean Jones, a customer of Simply Stationery, returns a filing cabinet she bought on 1 December for £75 on credit. She’s already been issued with a sales invoice, but hasn’t paid for it yet. Design a credit note for this transaction and state how you’d record the transaction.

Note: The rate of VAT is 20 per cent.