Question

What is difference between trade discount and cash discount?

Answer 1

Answer:

Difference Between Trade Discount and Cash Discount. A trade discount is one that is allowed by the wholesaler to the retailer, calculated on the list price of the product, whereas cash discount is allowed to stimulate instant payment of the goods purchased. ... It is classified as trade discount and cash discount.

Answer 2

• Difference between trade discount and cash discount

Trade Discount

: Taxes are not to be payed in the trade discount.

: It's recorded always only in invoice and not in the financial books or register.

Cash Discount

: Taxes are required to be payed in cash discount as they're are provided after the sale.

: It's recorded always only in the financial books or register.