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Why trade discount is not recorded in the books of account?

Answers were Sorted based on User's Feedback



Why trade discount is not recorded in the books of account?..

Answer / naveen kumar jm

Selling price is negotiated before raising the invoice; first we book original entry with revised selling price hence it is completely omitted from the books of accounts. And its permissible

Is This Answer Correct ?    2 Yes 0 No

Why trade discount is not recorded in the books of account?..

Answer / deepashree p

because the company need to earn extra profit they are not mentioned in books of accounts

Is This Answer Correct ?    2 Yes 5 No

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