Maharashtra State BoardHSC Commerce 11th
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State whether the following statement is True or False with reasons.Trade discount is recorded in the books of accounts. - Book Keeping and Accountancy

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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