WHAT IS CASH DISCOUNT & TRADE DISCOUNT?

Answer Posted / sudheer reddy

CASH DISCOUNT:Any amount settled before credit period that
discount allowed or recieved is called cash discount. cash
dicount is recoreded in the books of Accounts

TRADE DISCOUNT: Amount(Discount) allowed or received at the
time of Purchase or Sales, its not recoreded in the books
of Accounts

Is This Answer Correct ?    5 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

Tell me do you have any professional experience of this field?

653


Can you help me to pass the journal entry for work in progress for a construction company? I would like to know the debit and credit for W.I.P will be under in which accounts head. Eg: debit will be in current asset a/c head, and credit will be under in which a/c in P&L? whether under purchase a/c head, or under direct income a/c head? please give me the details. Thanks for your previous answer?

1711


Compare financial accounting and cost accounting.

666


what is casual receipt? is it exmpted in income tax?

3352


my question is I am finance student I want to know which type of the question are asked by the interwier in interview.

1589






What is meant by public accounting?

632


IF SALES BILL PREPARED BY CHARGING CST 4 WHEN THERE IS CST 4 TO BE CHARGED. BUT NOT 2010-2011 CST IS 2%. NOW WE HAVE TO PREPARED CREDIT NOTE AGAINST THAT BILLS WHICH CHARGED CST4 AT THAT TIME. THEN I HAVE TO ASK THAT HOW TO MAKE CREDIT NOTE NOW I.E 2010-2011 BY CHARGING 4% OR 2% ?

1753


What are premises in accounting sense? What is vat adjustment?

632


How to show Airticket Expense on Company's A/c as Company expense

1360


WHAT IS ACCOUNTING HEAD FOR TRADE FINANCE? I HAVE PAID 49268 FOR TRADE FINANCE.WHERE SHOULD I TAKE IN TALLY

1538


What would be journal entry for--Encashed a bank draft belonging to X? Ans as given in textbook is Bank account debit to Cash account credit.......But shouldnt it be Cash account debit to Bank account credit...Wat do u guys feel??And do explain ur answers..Thnx in advance

5792


audit under section and penalty under saction scurtiny under saction

1657


Can you name different branches of accounting?

606


What is the treatment of claim settled by insurance company but still receivable in profit and loss account

821


what is the journal entry can be passed for an opening balance (bank, fixed asset, provisions)to the new software

1054