Trade discount allowed on sales is _________________.

Debited to customer's account

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Credited to customer's account

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Debited to profit and loss account

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

None of these

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Debited to profit and loss account
Discount is classified as Cash Discount and Trade Discount.
Cash discount is allowed to speed up the cash collection from the customers.
Trade discount is allowed to promote the sales and its an indirect expenses which need to be debited to profit & loss account.

Suggest Corrections

Similar questions

A sales person is asked to finalize a deal with customer. The marketing manager allows him to give a discount of up to 15% but the Finance Manager allows him to give discount of upto 35%. Which principle is violated here?

Q. A sales person is asked to finalize a deal with customer. The marketing manager allows him to give a discount of upto

10

but the Finance Manager allows him to give discount upto

25

. Which principle is violated here?

Q. The marked price of an article is

20

% above the cost price. A discount of

10

% is allowed to a customer. the profit per cent is :

Q. A dealer marked the price of an item 20% above cost price. He allowed two successive discounts of 20% and 25% to a customer. As a result he incurred a loss of Rs.1400. At what price (in rupees) did he sell the item to the customer?

The catalogue price of a colour T.V. is $R s . 18, 000$ . The shopkeeper sells it to a customer at a discount of $20 %$ on the catalogue price. He gives a further off-season discount of $10 %$ on the balance. But Sales Tax at $10 %$ is charged on the remaining amount. Find the Sales Tax amount, the customer has to pay

Join BYJU'S Learning Program