CASH DISCOUNT IS NEVER SHOWN IN THE JOURNAL ENTRY BUT TRADE 
DISCOUNT IS SHOWN IN THE JOURNAL ENTRY.

(A)5% TRADE DISCOUNT
 
    PURCHASE A/C     DR.  9500
     DISCOUNT RECEIVED  DR.  500
      TO CASH A/C                     CR.10,000    
    (BEING GOODS PURCHASE WITH TRADE DISCOUNT)

(B) 5% CASH DISCOUNT

     PURCHASE A/C    DR.    9500
       TO CASH A/C               CR.9500
     (BEING GOODS PURCHASED)

in case of trade discount
purchase a/c dr.........100000
to, discount a/c................5000
to, cash a/c...................95000

in case of cash discount
purchase a/c dr............95000
to, cash a/c....................95000

Trade Discount is the discount provided on bulk purchases 
and generally trade discount is not shown in the books of 
accounts the entry for purchase of 10,000  5% trade 
discount is 
   Purchase A/c....Dr 9500
       To Sundry Debtor/cash/bank A/c. 9500

Cash Discount is the discount provided for payments made 
before due date and for cash purchases and this is gain to 
the company and is shown in the books of accounts and the 
entry will be 
   Purchase A/c....Dr 10000
          To Discount Received A/c  500
          To cash A/c               9500

Trade Discount is the discount provided on bulk purchases 
and generally trade discount is not shown in the books of 
accounts the entry for purchase of 10,000  5% trade 
discount is 
   Purchase A/c....Dr 9500
       To Sundry creditor/cash/bank A/c. 9500

Cash Discount is the discount provided for payments made 
before due date and for cash purchases and this is gain to 
the company and is shown in the books of accounts and the 
entry will be 
   Purchase A/c....Dr 10000
          To Discount Received A/c  500
          To cash A/c               9500

Trade discount is given at the time of selling goods but 
cash discount is given to collect balance quicly.Entry for 
this transaction will be 
Purchase A/C   Dr. 9500
    Discount A/C        475
    Cash/Bank A/c         9025