Question

22. No entry is made in the books of accounts of :
(1 point)
O Trade Discount
O Cash Discount
O Discount Allowed
O Discount Received​

Answer 1

Answer:

It may be a Trade discount

Answer 2

The correct answer is OPTION 1: Trade Discount.

• Manufacturers frequently develop product catalogs for distributors, retailers, and other resellers.
• The prices of the products will be included in these product catalogs.
• When a reseller agrees to buy a significant quantity of a product, the manufacturer lowers the advertised price.
• It's a trade discount. Trade discounts are frequently granted as a result of strong manufacturer-buyer ties or large transactions.
• In GST legislation, there is no distinction between trade and cash discounts.
• If a discount appears on the invoice, it can be subtracted from the taxable value of the items supplied.