Question

Answer in once sentence only.

Which discount is not recorded in the books of account?

Answer 1

A trade discount is not recorded in the books of accounts. This discount is allowed at the time of sale or purchase of goods at an affixed percentage on the printed list price of the goods. The purchases and sale transactions are recorded in the books at net value (i.e. List Price minus Trade Discount). Thus, the books of accounts do not reflect the amount of trade discount so allowed or received.