Question

Discount received which nature

Answer 1

hey mate here's ur ans:

Discounts may be offered by suppliers on sales of goods to attract buyers. Accounting for discount received depends on the nature of discount. Discounts may be classified into two types:

Trade Discounts: offered at the time of purchase for example when goods are purchased in bulk or to retain loyal customers.

Cash Discount: offered to customers as an incentive for timely payment of their liabilities in respect of credit purchases.