New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Journal entry is not made for which of the

    following?
    A Rebate Correct Answer Incorrect Answer
    B Commission Correct Answer Incorrect Answer
    C Trade Discount Correct Answer Incorrect Answer
    D Cash Discount Correct Answer Incorrect Answer

    Solution

    Trade discount is allowed on the list price and sales is done on the basis of net price i.e. list price minus trade discount. Hence trade discount is not recorded in books of account.

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