You asked: Which discount is not recorded in the books of accounts answer in one sentence?

Trade discount is not recorded in the books of account.

What is not recorded in the books of accounts?

Answer: Intangible assets are generally not recorded in the books of accounts. There are two types of assets namely tangible assets and intangible assets. Assets which have physical existence/ value are considered as tangible assets.

Which discount is recorded in the book of accounts?

Cash discount is always recorded in the books of accounts.

Which type of discount is not recorded in the books?

Answer: 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.

Which costs are not recorded in the account books?

Solution(By Examveda Team)

Since opportunity costs are not actually incurred, they are not recorded in the accounting records.

Why trade discount is not recorded in the books?

Trade discount is only applicable to the sale and purchase of goods. After deducting the trade discount from the MRP price of the product the sale price is determined and the invoice is created. The trade discount is not shown in the cash book.

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Is trade discount recorded in journal?

Trade discount is not recorded in the books of accounts. It is generally given at the time of sales, like on bulk purchase. Hence, the Purchase amount is shown net of trade discount in the books. A cash discount is received as an incentive for early payment.

Which discount is recorded in purchase and sales book?

It is provided as a business consideration such as trade practices, large quantity orders, etc. Trade discount in purchase book is shown in a separate row as a reduction and thus arriving at a final net amount to be recorded.

Which of the following discount is not shown separately in journal entry?

Journal Entry for Trade Discount

It is generally recorded in the purchases or sales book, but it is not entered into ledger accounts and there is no separate journal entry.

Which of the following is not recorded in balance sheet?

Explanation : Rent expenses does not appear in Balance sheet.

Are all transactions recorded in the accounting books?

Also remember that only those business transactions which concern money and can be expressed in monetary terms are recorded in the books of account. For example, if a company buys a computer for Rs 50,000, this is a transaction concerning money (receipt or payment); hence, it will be recorded in the books of account.