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Topic Content:
- Meaning of Discount
- Reasons for Granting Discount
- Types of Discounts
- Trade discounts
- Features of Trade Discount
- Cash discounts
- Features of Cash Discounts
- Classification of Cash Discounts
- Trade discounts
- Format of Three Column Cash Book
Discount can be defined as the reduction in the catalogue price of an article or goods in order to encourage bulk purchase and prompt payment.
Reasons for Granting Discount:
1. To encourage large quantity purchases.
2. Help to avoid the risk of bad debts.
3. To encourage prompt payment.
4. Discount attracts Customers.
5. It provides for the buyer’s profit margin.
6. To avoid tying down business capital.
Types of Discounts:
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