DIFFERNCE BETWEEN CASH DISCOUNT AND TRADE DISCOUNT :

Cash Discount	Trade Discount
(i) It is a reduction granted by a supplier from the invoice price in consideration of immediate or prompt payment.	(i) It is a reduction granted by a supplier from the list price of goods or services on business consideration.
(ii) It is allowed to encourage the prompt payment.	(ii) It is allowed to promote sales.
(iii) It is not shown in the invoice	(iii) It is shown by way of deduction in the invoice itself.
(iv) Cash discount account is opened in the ledger.	(iv) Trade discount account is not opened in the ledger.
(v) It is allowed on payment of money	(v) It is allowed on purchase of goods
(vi) It may vary with the time period within which payment is received	(vi) It may vary with the quantity of goods purchased or amount of purchases made.