Question

What is discount in accountancy ??

Answer 1

sales discount is a reduction in the price of a product or service that is offered by the seller, in exchange for early payment by the buyer. A sales discount may be offered when the seller is short of cash, or if it wants to reduce the recorded amount of its receivables outstanding for other reasons.

Answer 2

Answer :

Discount

》In the terms of accountancy Discount is a rebate or an allowance which is given to the buyer by the seller.

》It can be further divided into two parts :-

● Trade Discount

● Cash Discount