Write down the difference between Trade Discount and Cash Discount.

| Trade Discount | Cash Discount | | --- | --- | | 1) | It is allowed on a certain quantity being purchased | It is allowed on payment being made before a certain date | | 2) | Trade discount is not recorded in the ledger account | A ledger account has to be maintained for cash discount in the ledger | | 3) | The amount of the trade discount is deducted from the invoice | It is not deducted from the invoice |