Blogger Random - Recent - Specific Label Posts Widget - All in One Post Feed Widget

What is Difference Between Cash Discount and Trade Discount?

>> September 29, 2009


Trade discount is issued by deduction in list price.

Cash discount is issued by deduction in payable amount of debtors.


Trade discount is given with the aim to purchase at high quantity.

Cash discount is given with the aim to get payment fastly and before payment date .


Trade discount is shown as deduction in Invoice.

Cash Discount is not shown as deduction in Invoice.


There is no any accounting treatment for trade discount.

There is accounting treatment for cash discount both in vendor and buyer’s day book.


Trade discount is related to quantity of the goods purchased.

Cash Discount is related to the amount of payment but not to quantity of goods.


There is no need to give cash discount with trade discount.

If seller has given trade discount, cash discount can be given after trade discount.

Related Resource : List of  Similar Accounting and Finance and Banking  Terms Differences

You might like:

Follow Us


Anonymous,  November 3, 2013 at 4:28 PM  

Its absolutely good,
but my request to mr.admin
is kept a forum for student to post thair doubts in accounting, and get benifit from it

thank you

Post a Comment

About Accounting Education

An educational site with 2500+ articles, solutions, video-guides and tutorials on all topics related to accounting and finance.

Get Update on Mobile

Type in your mobile phone web browser for free access anytime, from any place.The content is designed specifically for cell phones and mobile devices.

Contact Us

Email :

Phone : +91-8557888436

Send an Email
Phone number and vCard
LinkedIn profile
Follow us on twitter