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".
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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.
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