\t\t\tMeaningA discount given by the seller to the buyer as a deduction in the list price of the commodity is trade discount.A deduction in the amount of invoice allowed by the seller to the buyer in return for immediate payment is cash discount.PurposeTo facilitate a bulk sales.To facilitate a prompt payment.InvoiceIt is shown in invoice as a deduction itself.It is not shown in invoice.When allowed?At the time of purchase.At the time of payment.Allowed to all customersYesNoEntry in booksNoYesVary withTime period, when payment is made.Quantity of goods purchased or amount of purchases made.\t
Trade discount is a discount allowded by the seller on purchase of goods in large quantity.Cash discont is a discount which is given by the seller of goods to encourage prompt or early payment.
1.

Diff bw trade discount and cash discount

Answer» BASIS FOR COMPARISON TRADE DISCOUNT CASH DISCOUNT


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