Question

what is trade discount in bills chapter

Answer 1

TRADE DISCOUNT

1. Such discount is allowed when goods are purchased beyond a certain quantity or as a trade practice.

2. Such discount is deducted in the bill. Therefore, accounting is made with net sales / purchases.

3.Gross Profit is automatically adjusted when net purchases and net sales are recorded.

4. Rate of trade discount may fluctuate with quantity bought.

5. No account for Trade discount is opened in the ledger.

Answer 2

Hey mate ✌️✌️


Trade discount is a reduction in the price by the sailor to the Purchase of goods when they buy good of certain quantity . Sales are recorded at net value . Similarly purchaser recorded by the purchaser at the net value .


✨ Hope this helps you ✨