Question

what do you mean by trade discount and cash discount? ​

Answer 1

Answer:

Trade discount is given on the catalogue price of the goods while the cash discount is given on the invoice price. Trade discount is granted with the aim of increasing the sales in bulk quantity, whereas Cash discount is granted to facilitate a quick payment. A trade discount is shown as a deduction in the invoice.

Answer 2

Answer:

Trade Discount : It is provided by the seller at the time of purchase to attract customers and increase sales.

Cash Discount : It is offered at the time when the seller offers payments and is calculated as an additional deduction on the printed invoice.