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Wht is the differance between Trade discount and cash
Discount?
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Answer / preeti piplani
Trade Discount does not show in the books of account& Cash
Discount get at time of Cash payment
| Is This Answer Correct ? | 35 Yes | 2 No |
Answer / abhishek shah
In trade discount we do not less trade amt in sale
voucher .we entered amount direct amt less trade amount.
Ex. Garment sale 950
Total Amt 950
50Rs is trade discount.
In Cash discount we less cash discount amt in sale voucher.
Ex. Garment sale 1000
cash Discount 50
Total Amt 950+
In journal there is no entry of trade discount, But in cash
discount there is an proper entry of cash discount
| Is This Answer Correct ? | 19 Yes | 1 No |
Answer / h.r. sreepada bhagi
Trade discount is generally given to the customers on bulk
purchase, repeated, purchases, etc. It's shown in the Sales
Invoice. Seller books the income net of discount and the
buyer books the purchase net of discount. In other words,
there is no need to account this discount separately.
However Cash discount is offered bu the seller to the buyers
on early payment & it's related to credit period. Eg, If
paid with in so many days, 2% discount on the invoice
amount, etc. Both the seller and the buyer need to account
the cash discount as expense or income in their respective
books of accounts.
In modern trading business (particularly retail trading),
discount is a regular feature & here the discount is given
at the time of sale itself, it can be treated as trade
discount and there's no need to book the discount
separately. Discount can be shown only in the MIS report for
the purpose of sales analysis and decision making.
| Is This Answer Correct ? | 11 Yes | 3 No |
Answer / abhishek shah
In trade discount we do not less trade amt in sale
voucher .we entered amount direct amt less trade amount.
Ex. Garment sale 950
Total Amt 950
50Rs is trade discount.
In Cash discount we less cash discount amt in sale voucher.
Ex. Garment sale 1000
cash Discount 50
Total Amt 950+
In journal there is no entry of trade discount, But in cash
discount there is an proper entry of cash discount
| Is This Answer Correct ? | 7 Yes | 0 No |
Answer / ukthika fernando
Cash Discount
Trade Discount
Is a reduction granted by supplier from the invoice price in
consideration of immediate or prompt payment
Is a reduction granted by supplier from the list price of
goods or services on business consideration re: buying in
bulk for goods and longer period when in terms of services
As an incentive in credit management to encourage prompt payment
Allowed to promote the sales
Not shown in the supplier bill or invoice
Shown by way of deduction in the invoice itself
Cash discount account is opened in the ledger
Trade discount account is not opened in the ledger
Allowed on payment of money
Allowed on purchase of goods
It may vary with the time period within which payment is
received
It may vary with the quantity of goods purchased or amount
of purchases made
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / n. manjunath
TRADE DISCOUNT :IS DISCOUNT FOR ONLY REGULAR CUSTOMERS, SO
COULD NOT SHOWING IN THE BOOKS OF ACCOUNTS NOTHING BUT
SPECIAL PRICES
CASH DISCOUNT :IS SALES PROMSION LIKE DISCOUNT % ETC
| Is This Answer Correct ? | 3 Yes | 6 No |
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