What is a cash discount entry?

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Solution

A cash discount is presented by manufacturers or sellers to purchasers for making the payment within an expressed number of days. The motivation behind cash rebates is to urge purchasers of products to make payments before the due date.

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Q. What is trade discount .How is it different with cash discount?

what is the journal entry for " purchase goods for Rs 200000 less trade discount of 20% and 5% cash discount from ajay for cash and supplied them to shafi at list price less 10% trade discount"

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