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Journal — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountJournal1 Mark
Question
Distinguish Trade Discount from Cash Discount? (Two points)
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Answer

Two points of differences between Trade Discount and Cash Discount are:
  1. Trade Discount is allowed to encourage large purchases whereas Cash Discount is allowed to encourage prompt payment.
  2. Trade Discount enables the retailer to sell goods at list price and earn better profit. Cash Discount will improve the cash flow.

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