Question

Why trade discount is not recorded in the books of accounts whereas cash discount is recorded in the books of accounts

Answer 1

because trade discount is allowed to us by the seller at the time of purchase.. and price net of trade discount is the historical price so we will treat it as initial price so there will not be any discussion of discount in this regard..
but cash discount is recorded because it is provided on certain terms and conditions..for eg. if we 75℅ of price immediately..then he will allow 10℅ cash discount. like that ...so which is an income (indirect). so it should be accounted for