What is trade discount and cash discount?

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Solution

A trade discount is given on the categorised price of the products while the cash discount is given on the receipt cost. Trade discount is allowed to expand the deals in large amounts, though cash discount is conceded to work with quick payment.

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2016
March 5		Sold goods to Shruti for ₹80,000 at 15% trade discount and 4% cash discount. Received 75% amount immediately through a cheque.
10		Purchased goods from Richa for ₹60,000 at 10% trade discount and 5% cash discount. 60% amount paid by cheque immediately.

What is difference between trade discount and cash discount?

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

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