Chartered Accountant (CA) Question:
Explain Trade discount, discount and rebate?
Answer:
Trade discount is normally given to the regular customers who are buying the products in large numbers. It can be like if you buy 100 numbers we will give you 10 numbers free or buy for Rs.1500/- and get 150/- worth free.
Discount is similar to above but will be given for Credit customers like if you pay within one week 15%, within 15 days 10% and more than 15 days no discount.
Rebate is like buy for 70/- and pay only Rs65/-.
Discount is similar to above but will be given for Credit customers like if you pay within one week 15%, within 15 days 10% and more than 15 days no discount.
Rebate is like buy for 70/- and pay only Rs65/-.
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