what is the difference between cash discount and trade
discount.
what is the journal entry for purchase of 100000 giving
(a) 5% trade discount
(b) 5% cash discount.
- 20 Answers
- 52618 Views
- TCS, I also Faced
- E-Mail Answers
Answer Posted / chintan shah
Difference between Cash Discount & Trade Discount
Cash Discount
Trade Discount
Cash Discount Account is opened in the ledger. Trade Discount account is not opened in the ledger.
Cash discount is granted by the supplier in the consideration of instant payment. Trade Discount is granted by the supplier from the list of goods or services on consideration of business.
It is allowed on payment of money. It is allowed on purchase of goods.
It is not shown in the invoice. It is shown by the way of deduction in the invoice.
It encourages prompt payment. It is allowed to encourage the sales.
This discount varies with the time period within which payment is received. This discount varies with the quantity of goods purchased.
| Is This Answer Correct ? | 2 Yes | 1 No |
Post New Answer View All Answers
What is pr ? why it is prepared and what is its purpose ? who is responsible for preparing it ? And on any fault in it who is liable ? And what will happen if fault comes ?And What are major reasons of fault ?
How does the internal audit differ from an external audit?
who is the auditor and his deautis
A company charity (gross income
Should the duty of creating a purchase order be segregated from the duty of creating a vendor?
What sort of image do you have?
for how much loan a borrower has to submit QIS
what percent of wages calculate from sales of a firm (registered under manufacturing of machinery spares) sales (appr)- RS.10000000/-
Explain the difference between internal audit and external audit?
What are the importance of internal audit to the organization?
What is the difference between internal audit and statutory audit?
Why there is no opening balance for Profit and Loss Account?Refer me Detailed explanation. Thank you.
What does an internal audit charter contain?
What are intangible assets?
hi friend i have selected in ssc cgle as accountant in audit department. can anyone tell about the work of accountant in audit department?
