DIFFERENCE BETWEEN TRADE AND DISCOUNT AND CASH DISCOUNT








Trade Discount

Cash Discount




1.
It  is  offered  at  the  time  of  sale  or
1.
It is offered at the time of getting quick
purchase.

payment.
2.
It is usually offered or allowed on account
2.
It is usually offered or allowed for full or
of purchases made beyond a prescribed

part settlement of account at an earlier
quantity.

date.
3.
It is deducted from the list price in the
3.
It  is  not  deducted  at  the  time  of
invoice.

preparation of the invoice.
4. It is duly recorded in the books of the
4.
It is not recorded in the books of account.

account.
5.
It is usually given in percentage.
5.
It  may  be  given  in  percentage  or  in



absolute figure.





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