Difference between trade discount and cash discount ?

Dear student,
BASIS OF DIFFERENCE TRADE DISCOUNT  CASH DISCOUNT
MEANING It is defined as discount given by seller to buyer as deduction in list price of the product. It refers to deduction in amount of sales allowed by seller to pu.rchaser for immediate payment
PURPOSE To encourage bulk sales to facilitate prompt payment
DISCLOSURE It is not recorded in books of accounts It is shown in books of accounts
TIME OF DISCOUNT At time of sale At time of payment
Regards

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