Trade discount is the discount that is deducted from the source and then the actual amount is shown. The trade discounts are not shown in the books of accounts. Only the cash discount is shown in the books of accounts but the trade discount will be deducted from the actual and the net amount will be considered.
#1. a discount from the list price of a commodity allowed by a manufacturer or wholesaler to a merchant
#2. Reduction of the list or regular price in return for the purchase of large quantities, also called quantity discount or price discount.
#3. A discount on the list price granted by a manufacturer or wholesaler to buyers in the same trade.
trade discounts, cash discounts, discount series and seasonal discounts
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yes, trade discounts is also called functional discounts I wish I could improve this answer since it does not address the actual question of what these discounts are, but I am also looking for that answer, so hopefully someone will actually take the time to read the question before answering it.
Trade discounts are guranteed discounts a business is getting by purchasing from a seller. Cash discounts are OPTIONAL discounts that a buyer gets if they opt to pay their bill (invoice) earlier then the due date. The seller specifies in the invoice how many days earlier a buyer has to pay their bill to get the cash discount. If a cash discount is taken, it is applied after the trade discounts, but before shipping and handling charges.
Because I'm a bit tired at the moment.
shyama/c........dr to purchases a/c
You have to ask the seller what trade discount they will give you. Its usually a sliding scale based on volume or established rating of the buyer with that seller.
can you give some example if cash discounts?
Trade discount is the discount that is deducted from the source and then the actual amount is shown. The trade discounts are not shown in the books of accounts. Only the cash discount is shown in the books of accounts but the trade discount will be deducted from the actual and the net amount will be considered.
Trade discounts are not entered in the accounting records. They are not considered to be a part of the sale because the exchange agreement was based on the reduced price.
Corporate Perks,Verizon and Sprint are some companies that give discount to their employees. Groupon is one of the most known sites that provides you with discounts on variety of deals.
Single trade discount is the percentage off an individual good during an individual purchase. Discount series are several discounts given at a duration in time.