Thursday, April 24, 2014

BASIC ACCOUNTING : DISCOUNT

TRADE DISCOUNT :

WHEN A CUSTOMER BUY GOODS REGULARLY OR BUY LARGE QUANTITY OR BUY FOR LARGE AMOUNT, THE SELLER USUALLY PROVIDES SOME DISCOUNT ON PURCHASE. DISCOUNT PORTION DEPEND UPON THE DISCOUNT POLICY OF A PARTICULAR FIRM.

CASH DISCOUNT :

DISCOUNT MAYBE ALLOWS FOR SETTLEMENT OF PREVIOUS PURCHASED. CASH DISCOUNT ALSO ALLOWED ON FULL PAYMENT. IT ALSO MIGHT BE ALLOWED ON PAYMENT MADE BEFORE CREDIT LIMIT GIVEN.

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