How to decide whether the given discount should be recorded or not - Accountancy -

Question

How to decide whether the given discount should be recorded or not

Chakshu Alreja · Answer

If the discount given is trade discount then it is not to be
recorded, it will just affect the amount but if the discount
mentioned is cash discount and the purchase or sale has been done
for cash then discount has to be shown If the purchase or sale is
on credit then we dont have to record the cash discount