Q294
The trade discount on purchases is recorded
A.
When it is received
B.
When the inventory is purchased
C.
When the inventory is sold
D.
Not at all recorded in the books
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
The trade discount on purchases are not all recorded in the books. Trade discount is not separately shown in the books of accounts, and all amounts recorded in a purchases or sales book are done in the net amount only.