- Letter of credits are negotiated - Usance L/Cs are discounted - Sight L/Cs are purchased My knowledge is also limited so please read more online. Regards, Sumit Gupta IIFT
quantity discount and trade discount are the same thing. it is used when the dealer wants to sell in bulk. while cash discount is given when he wants prompt payment.
In what context are you referring?
A trade discount is a discount that a manufacturer or wholesaler makes to the retail price of a product when selling to a reseller. A cash discount is a reduction made to the invoice if the buyer pays the invoice prior to a set date.
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Cash Discount: Reduction in price given by the creditor to the debtor is known as cash discount. This discount is intended to speed payment and thereby provide liquidity to the firm. They are sometimes used as a promotional device. we also explain that discount is relaxation in price. http://en.wikipedia.org/wiki/Discounts_and_allowances#Trade_discount
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Using cash for a purchase can help you secure a better deal because it eliminates the need for the seller to pay credit card processing fees. This cost savings may incentivize the seller to offer a discount or negotiate a lower price, ultimately benefiting the cash buyer.
Purchase journal is used for keeping the chornological record of date wise purchase of goods purchased for trading purposes on credit.
to help reconcile the monthly statement and explain the circumstances and the actions the cardholder took to complete the purchase
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