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.Join The Discussion
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Why trade discounts not separately shown in books of accounts??