Difference between trade discount and cash discount class 11
Asked by admin @ in Accountancy viewed by 442 People
What is the difference between trade discount and cash discount any five points
Answered by admin @
Explanation:
point 1
trade discount is not recorded in books of accounts
cash discount is recorded in books of accounts
point 2
trade discount is given on catalogue price
cash discount is given on invoice price
point 3
trade discount is given on cash payment and credit payments to
cash discount is given on only cash payment
point 4
trade discount is given on basis of purchase
cash discount is given on basis of payment
point 5
trade discount is facilitates to increase sales
cash discount is given for quick payments
hope this will help you
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