True or False
State whether the following statement is True or False with reasons:
Trade discount account is a nominal account.
This statement is False.
When a discount is allowed on catalogue price or list price, it is known as a Trade discount, which is a general discount to be allowed to every customer. From the accounting view point, it is not to be recorded in the books. So, we can say that the trade discount itself is not an account.
Concept: Classification of Accounts
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