Question

Trade discount is

(A) Allowed at the time of receiving payment

(B) Allowed at the time of sales of goods

(C) Both (A) and (B)

(D) None of these

Answer 1

Correct option is (B) Allowed at the time of sales of goods

Trade discount is a reduction in the listed price of a product or service, provided by the seller to the buyer for various reasons such as volume purchases, trade relationships, or promotion. It is typically applied at the time of sale, before the payment is made.