How to apply a trade discount
A trade discount comes off the list price before VAT is worked out. See the sum, and what reaches the books.
Task 1What a trade discount is3 questions
A trade discount is a percentage taken off the list price. The list price is the full price in the seller's price list.
It is given to regular customers and to customers in the same trade. It does not depend on when they pay.
Larkfield gives The Old Dairy Café a trade discount of 10%. The café orders goods with a list price of £500.
Task 2VAT comes after the discount4 questions
Task 3What goes into the books3 questions