Discount is a technique of increasing the sale in which businessman reduces the price of goods and services which is paid by customer for buying the product. That reduction in the price is called discount. It is just like the reward to customer to buy more. With this, company can promote their sales. There are many types of discount but two types are main.
First is Trade discount which is given on the list price. It is not recorded in the books of company.
Second is cash discount which is given for getting cash fastly from customers. It is recorded in the books of company by creating discount allowed account.
First is Trade discount which is given on the list price. It is not recorded in the books of company.
Second is cash discount which is given for getting cash fastly from customers. It is recorded in the books of company by creating discount allowed account.
