BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Trade discounts are usually based on the list price (catalogue price). Sales are recorded based on net price. Net price = List price – Trade discount. Therefore, trade discounts are not recorded in the books of accounts.

Detailed explanation-2: -Solution: The statement is False. Discount is always marked on Marked Price but Marked Price minus discount gives the selling price NOT cost price. ✦ Try This: A discount of 15% is given on the marked price of Rs.

Detailed explanation-3: -A trade discount is the amount by which a manufacturer reduces the retail price of a product when it sells to a reseller, rather than to the end customer.