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Difference between trade discount and cash discount are as follow:

1)on the basis of objective:

td: this discount is allowed to increase sales.

Cd: this discount is allowed to motivate the customer to pay early.

2)basis:

td: it is allowed on the list price of the goods.

Cd: it is allowed on the amount to be paid.

3)entry in the books:

td:it may be stated as information,but it is not recorded in the books of account.

Cd: it is recorded in the books of accounts.

4)entry in invoice:

td: it is stated in the invoice.

Cd: it is not shown in the invoice.

5)receiver:

td: it is allowed to all customer, wethers cash or credit.

Cd: it is not allowed to all customer.

6) rate:

td: rae of trade discount is generally higher than the cash discount.

Cd: rate of cash discount is generally lower.

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Q: What is the difference between cash discount and trade discount?
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