This is a pretty easy answer. When you buy goods, you receive an invoice from your supplier. When you record it in your bookkeeping, the total amount you will need to pay to your supplier is is considered a trade payable.
The cost of sales is really the net value of the goods / services you bought, and only occurs when you sell the things you bought (partly or in whole).
Let me give an example:
Suppose you buy 10 items, costing 5 EUR a piece. The applicable VAT rate = 20% (VAT = value added tax, but can also be a sales tax, for instance). You will receive an invoice of (10 items x 5 EUR/item x (1 + 20%) = 60 EUR). This 60 EUR is considered the trade payable.
Next, you sell 5 items in a given month. You bought them for 5 EUR a piece, so your cost of sales will be 25 EUR.
Remark: if you sell all the items you bought, your cost of sales will equal the net amount of the invoice, exclusive sales tax / value added tax, i.e.: 10 items x 5 EUR a piece = 50 EUR.
In general: The trade payable expresses the amount of money you owe your suppliers, while cost of sales expresses the amount of purchases relating to the sales you have.
The difference between trade debtors and sundry debtors is trade debtors are specific debts like credit cards. Sundry debtors are a wide variety of debtors that can be from any source.
I've never really ran across this, but my understanding, and I do hope that I am at least close is: A trade invoice is an invoice dealing with a "trade", product for product or service for service, even product for service and vice versa. (no cash is involved.) Where a "sales" invoice is pertaining to a cash/product or cash/service transaction.
Trade receivables arising in normal course of business but other receivable is not.
DEFINATION OF A SALES DAYBOOK AND A CASHBOOK. Sales day book is an account prepared when a transaction is made with a trade discount.i.e ,[trade discount is the part of price set off by a seller to the buyer for purchasing a bulk of good from the seller].It is also a subsidiary book of account. Cash book is an account prepare to show the the inflow and out flow of cash.it is use to record the cash discount [part of price set off by the seller to the buyer for prompt payment for seller's goods and services.
Balance of Trade is the accounting of goods and service imported and exported. Balance of Payments is the accounting of money owed and loaned other nations.
Sales tax in Pennsylvania is calculated on the difference between the sales price of the car and the trade-in amount. This is usually called the "money difference"
Basically they are the same in their application - to generate sales. The difference is one advert is aimed at people who are in a specific trade and the product is something that non trade people would not use. i.e. specialised equipment.
According to experts the difference between sales and turnover is sales refers to the income received from goods and services sold by a business whereas turnover is the income received when businesses trade goods and services.
It varies from state to state. Where I live (Washington State) you pay sales tax on the difference in value between the new car and the trade-in vehicle. Example: New car purchase price $25,000, trade-in car value $10,000; tax is paid on $15,000. It varies from state to state. Where I live (Washington State) you pay sales tax on the difference in value between the new car and the trade-in vehicle. Example: New car purchase price $25,000, trade-in car value $10,000; tax is paid on $15,000.
the answer is banana
main aim of both the trade is maximizing there profit on sales
d
International trade is trade between two or more countries, while external is a trade in another country.
Cash discount is the discount in amount in accounts payable while trade discount is on sales price discount which is not recorded in business books and transaction is recorded at discount price.
What is the difference between a single trade discount and trade discount series? In: http://wiki.answers.com/Q/FAQ/2547-72 [Edit categories]
International trade is trade between people or businesses in different countries. Local trade is trade between businesses and individuals in the same local area.
one is multilateral one is bilateral