Share this…FacebookTwitterLinkedinA trade discount is one that is allowed by the wholesaler to the retailer, calculated on the list price of the product, whereas cash discount is allowed to stimulate instant payment of the goods purchased. The main difference between trade discount and cash discount is that ledger account is opened for a cash discount, but not for a trade discount. Trade Discount Vs Cash Discount BASIS FOR COMPARISON TRADE DISCOUNT CASH DISCOUNT Meaning