First
Trade discount is issued by deduction in list price.
Cash discount is issued by deduction in payable amount of debtors.
Second
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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 .
Third
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Trade discount is shown as deduction in Invoice.
Cash Discount is not shown as deduction in Invoice.
Fourth
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There is no any accounting treatment for trade discount.
There is accounting treatment for cash discount both in vendor and buyer’s day book.
Fifth
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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.
Sixth
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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
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Trade discount is issued by deduction in list price.
Cash discount is issued by deduction in payable amount of debtors.
Second
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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 .
Third
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Trade discount is shown as deduction in Invoice.
Cash Discount is not shown as deduction in Invoice.
Fourth
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There is no any accounting treatment for trade discount.
There is accounting treatment for cash discount both in vendor and buyer’s day book.
Fifth
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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.
Sixth
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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