Definition of Trade Discount and Cash discount


Definition Of Trade Discount and Cash discount

Definition of Trade Discount
When merchandise are purchased or sold and some allowance in the price of it is given or received in the time than that amount is called Trade Discount.

Definition of Cash discount
When a person wants to pay his debt before the due date and the receiver may allow him certain amount as concession for prompt payment. This deduction is called cash Discount.

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