MCQ
True or False
State whether the following statement is True or False with reasons.
Trade discount is recorded in the books of accounts.
Options
True
False
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Solution
This statement is False.
Trade discount is a general discount, allowed on catalog price or on the price list price. For increasing the sale or to give sufficient margin to retailers, generally trade discount is allowed. Therefore, the trade discount is not to be recorded in the books of accounts.
Concept: Journal
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