1. Meaning ↓
Trade Discount is a discount allowed past times the seller to the buyer inwards example of mass purchases made past times him.
Cash Discount is a reduction inwards the cyberspace sum payable past times the buyer when prompt payment is made past times the buyer.
2. When Allowed?
Trade discount is ordinarily allowed when mass purchases are made.
Cash discount is ordinarily allowed if payment inwards cash is made promptly i.e. inside a brusk catamenia of time.
3. Purpose or Objective ↓
Trade discount's object is to attract bigger orders past times giving incentive to the buyer to purchase more.
Cash discount's operate is to encourage the buyer to brand prompt payment.
4. How Calculated?
Trade discount is calculated every bit a percent of the catalogue price.
Cash discount is calculated every bit a percent of cyberspace sum payable past times the buyer.
5. Variation inwards Rate ↓
Trade discount charge per unit of measurement varies according to the type in addition to quantity of goods purchased.
Cash discount varies according to the catamenia of payment.
6. Entry inwards the Books of Accounts ↓
Trade discount does non seem inwards the books of accounts.
Cash discount is recorded inwards the books of accounts.
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