_____________ is a deduction from the list or catalogue price allowed by the wholesalers to the retailers for various reasons.

Trade discount

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Special discount

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Cash discount

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None of the above

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Solution

The correct option is B Trade discount
Discount are of two kinds: Trade discount and cash discount.

Trade discount is allowed to promote the sales and given as a general practice.
Trade discount is allowed on the list price or catalogue price.
Trade discount is not recorded in books of account.
Net price i.e. List price minus trade discount is considered as sale value.

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