Difference Between Trade Discount and Cash Discount


                                       Trade Discount                                                           


1.  It is used to increase Sales.
                               
2.  It is not the part of accounting books.
                   
3.  It is very helpful to sales persons to  achieve their targets.         

4. Trade discount is useful for bulk sales. 

5. Trade discount is not the part of  "Final Accounts".           
     


         
https://www.youtube.com/feed/my_videos



                                     Cash Discount


1.  It is used to recover dues before due date.    

2.  It the part of accounting books.

3.  It is helpful to reduce bad debts in books.

4.  Cash discount is useful to get payment  from customers before due date. 

5.  Cash discount is the part of Final Accounts.                                                                                                                                                                                                                 


                           




Comments

Popular posts from this blog

Golden Rules Of Accounting

Teacher's Day Special

Do you know?