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Q: What is amount of trade discount is represented by?
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What is a trade discount?

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.


Differentiate between cash discount and trade discount?

Cash discount is a discount offered by a seller to a buyer for paying earlier than the due date, whereas a trade discount is a discount provided by a seller to a buyer based on the quantity or value of goods purchased. Cash discount reduces the actual amount to be paid, while trade discount is deducted from the list price before calculating the invoice amount.


What is the trade discount amount and net price of an invoice of 5678 at a 25 percent discount?

The trade discount of 5678 with a 25 percent discount would be 4258.50. This is considered to be a math problem.


What is the difference between a cash discount and a trade discount?

a cash is an amount deducted from the value of an item at time of purchase, while a trade discount is the deducted from purchase amount for an item of placed value surrendered at time of purchase.


Bring out the difference between trade discount and cash dicount?

Cash discount is the discount in amount in accounts payable while trade discount is on sales price discount which is not recorded in business books and transaction is recorded at discount price.


What is trade 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.


What does nett price mean?

if you mean "Net Price", it's the amount after deducting trade discount and cash discount.


How do you record journal entry to purchase goods with trade discount?

debit goods purchased (at trade discount amount)credit cash / bank / accounts payable


What exactly is a trade discount?

When a product or item is sold to a reseller the trade discount is the amount or rate by which the retail price is reduced.It reflects the resellers profit margin.


Will trade discount be entered anywhere in accounting?

Trade discount is not shown any where in accounts as cash is received with discounted amount and sales also shown with reduced price.


What is a single trade discount?

a single trade discount is just that one trade discount.


What is the Difference between trade discount and discount allowed?

trade discount is for trade customer (who has an account with the supplier) discount allowed is for walk in customers (no account holders)