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The trade discount on purchases is recorded

A. When it is received

B. When the inventory is purchased

C. When the inventory is sold

D. Not at all recorded in the books

Answer: Option D

Solution(By Examveda Team)

The trade discount on purchases are not all recorded in the books. Trade discount is not separately shown in the books of accounts, and all amounts recorded in a purchases or sales book are done in the net amount only.

This Question Belongs to Commerce >> Accounting

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Comments ( 1 )

  1. Yashoda Bharti
    Yashoda Bharti :
    4 years ago

    Why trade discounts not separately shown in books of accounts??

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