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What is the difference between Cash discount and Trade discount?

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Question ajoutée par Visal Joseph , Tax Manager , Al Mizan Tax Consultants L.L.C
Date de publication: 2017/03/23
MOHAMMED ELATTAR
par MOHAMMED ELATTAR , مدير مالي , TAZWEED FOR AGRICULTURE CROPS

Thank you for calling thedifference between commercial deduction of cash discount:commercial discount: reduction granted by the seller and the buyer to urge him to purchase or purchase in large quantities. This deduction is not recorded in the books of the seller and the buyer books, where the value of the goods after the discount.The cash discount: reduction granted by the seller and the buyer to urge him to an early repayment records in the books of the seller as (the debtor) called Discount permitted. In the books of the buyer are recognized as revenue ( a creditor ) called acquired a discount.

manseer muhammed ali
par manseer muhammed ali , Accountant General , Royal Lighting L.L.C & Royal Furnishing LLC

A discount given by the seller to the buyer as a deduction in the list price of the commodity is trade discount. A deduction in the amount of invoice allowed by the seller to the buyer in goods or services is cash discount.

Soliman Abd  ALmalak Gendy
par Soliman Abd ALmalak Gendy , مدير ادارة مراقبة حسابات , الجهاز المركزى للمحاسبات

A trading discount is a discount given by a seller to the buyer as a deductible in the list price -A cash discount is a deduction in the amount of invoice allowed by the seller to the buyer in goods or services

teresah njoki
par teresah njoki , RECEPTIONIST , Hilton Hotels World Wide

Trade discount is referred to as a discount, given by the seller to the buyer at the time of purchase of goods, as a deduction in the list price of the quantity soldCash Discount is referred to as a discount, allowed to customers by the seller at the time of making the payment of purchases, as a reduction in the invoice price of the commodity.

Aya Omar Abdel Gawwad Abdel Latif
par Aya Omar Abdel Gawwad Abdel Latif , متدرب , التعمير و الاسكان #حديثة التخرج (^_^)

Thank you for invitation

Key Differences Between Trade Discount and Cash Discount

Trade discount is given on the catalogue price of the goods while the cash discount is given on the invoice price.

Trade discount is granted with the aim of increasing the sales in bulk quantity, whereas Cash discount is granted to facilitate a quick payment.

Trade discount is allowed to all customers while the Cash discount is allowed to those customers, who purchase goods in cash.

In the case of Trade Discount, no entry is made in the books of accounts, while the proper entry is made in the books of accounts for the cash discount.

Trade discount is allowed at the time of purchase while the cash discount is allowed at the time when the payment is made.

 

ahmed mohamd shatat
par ahmed mohamd shatat , محاسب عام , شركة شتات للمقاولات العامة

THANK U FOR INVITE 

I AGREE WITH MR /MOHAMED ELATTAR

Abdelrahman Ali Mohamed Abdelrehim
par Abdelrahman Ali Mohamed Abdelrehim , Accounting Manager, 7-2021-present , Petroleum Pipelines Co.

Thank you for invitation

I agree with our mates

Abdullah Aziz Eldain Morsi  Elgendy -        CMA  Candidate
par Abdullah Aziz Eldain Morsi Elgendy - CMA Candidate , Regional Receivable Accountant , Amiantit Group of Companies

 fully accepted with Ms Aya  answer   it is  great one

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