Trade discounts are -not recorded in the booksnot used determining the net pricerecorded in the booksused specific purposes in accounting

Question

Toppr Admin · Accepted Answer

Trade discount is a general discount allowed to every customer to promote the sales- Trade discount is allowed on the list price hence customer to pay only balance amount after deducting the trade discount-xA0-Hence trade discount will not be recorded in books of account-

Provision for Discount on Debtors A/c To Debtors A/c	Dr.
Profit & Loss A/c To Provision for Discount on Debtors A/c	Dr.
Provision for Discount on Debtors A/c To Trading A/c	Dr.
Debtors A/c To provision for Discount on Debtors A/c	Dr.

Trade discounts are ___________.
not recorded in the books
not used for determining the net price
recorded in the books
used for specific purposes in accounting

Trade discount is a general discount allowed to every customer to promote the sales. Trade discount is allowed on the list price hence customer to pay only balance amount after deducting the trade discount.
Hence trade discount will not be recorded in books of account.

Trade discounts are ___________.not recorded in the booksnot used for determining the net pricerecorded in the booksused for specific purposes in accounting

Trade discount is a general discount allowed to every customer to promote the sales. Trade discount is allowed on the list price hence customer to pay only balance amount after deducting the trade discount. Hence trade discount will not be recorded in books of account.

Trade discounts are ___________.
not recorded in the books
not used for determining the net price
recorded in the books
used for specific purposes in accounting

Trade discount is a general discount allowed to every customer to promote the sales. Trade discount is allowed on the list price hence customer to pay only balance amount after deducting the trade discount.
Hence trade discount will not be recorded in books of account.