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Monday 20 June 2011

What is the differance between Trade discount and cash Discount how to define

Trade Discount does not show in the books of account& Cash Discount get at time of Cash payment.

In trade discount we do not less trade amt in sale
voucher .we entered amount direct amt less trade amount.

Ex. Garment sale 950
Total Amt 950
50Rs is trade discount.

In Cash discount we less cash discount amt in sale voucher.

Ex. Garment sale 1000
cash Discount 50
Total Amt 950+

In journal there is no entry of trade discount, But in cash
discount there is an proper entry of cash discount

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