If all these small payments are recorded in the main cash book, it will be loaded with lot of entries. Hence, all petty payments of the business may be recorded in a separate book, which is called as "Petty Cash book"

(i) Trade discount is a deduction given by the supplier to the buyer on the list price or catalogue price of the goods
(ii) It is given as a trade practice or when goods are purchased in large quantities. It is shown as a deduction in the invoice.
(iii) Trade discount is not recorded in the books of accounts. Only the net amount is recorded.

(i) Cash discount is allowed to the parties making prompt or immediate payment. It is discount allowed (loss) for the creditor and discount received (gain) for the debtor who makes payment
(ii) The discount is allowed when payment is received or made and hence the entry for discount is also passed with the entry of payment.

In the books of Kunal Cash Book (Single column)

Date	Receipts	L.F	Amount Rs.	Date	Payments	L.F	Amount Rs.
2017				2017
Apr.1	To Pradeep's capital Alc		27,000	Apr.5	By Purchases Alc		6,000
10	To Sales Alc		11,000	13	By BankA/c		5,000
14	To Sales Alc		9,000	21	By Stationery Alc		200
29	To Bank Alc		4,000	25	By Murugan Alc		14,000
				26	By Commission A/c		700
				30	By Balance c/d		25,100
			51,000				51,000
May 1	To Balance B/d		25,100

In the books of Kuna  Cash Book (Single column)

Date	Particulars	L.F	Amount Rs	Date	Payments	L.F	Amount Rs
2017				2017
Jan.1	To Balance b/d		11,200	Jan.7	By rent A/c		30
Jan.5	To Ramesh A/c		300	Jan.10	By Mohan A/c		700
Jan.8	To Sales A/c		300	Jan.27	by Furniture		200
				Jan.31	By Salaries A/c		100
				Jan.31	By Balance C/d		10,770
			11,800				11,800
Feb.1	To Balance B/d		10,770

(i) The amount given to the petty cashier in advance is known as "Imprest Money". The word imprest means payment in advance.
(ii) The word imprest means payment in advance.
(iii) The petty cashier makes payments from this amount and records them in petty cash book. At the end of a particular period the petty cashier submits the petty cash book to the head cashier.
(iv) The head cashier scrutinises the petty payments and issues a fresh cheque equal to the amount spent by petty cashier so that the total amount with the petty cashier is how equal to the amount he had received in the beginning as advance.
(v) Under the system the total cash with the petty cashier never exceeds the imprest and at any time during the period. This method thus provides an effective control over petty payments.

Dr.                             In the Books of Anand Cash Book (with Cash and Discount columns)                                        Cr. Date Receipts R.N. L.F. Amount Date Payments V.N. L.F. Amount Discount allowed Rs Cash Rs Discount reveived Rs Cash Rs 2017 Dec           2017 Dec           1 To Balance c/d       19,500 15 By Electricity Charges A/c       12,500 4 To Sales A/c       32,000 17 By Computer A/c       16,800 9 To Gopu A/c     200 11,800 25 By Gandhi A/c     300 19,700 28 To Thiruvengadam A/c     100 8,900 30 By Trade expenses A/c       3,500             31 By Balance c/d       19,700         300 72,200         300 72,200 2018 Jan 1 To Balance b/d       19,700            

Dr.                                                 In the Books of Pandeeswari Cash Book (Single Column)                                     Cr.

Date	Receipts	R.N.	L.F.	Amount Rs	Date	Payments	V.N.	L.F.	Amount Rs
2017 June					2017 June
2	To Pandeeswari Capital A/c			50,000	8	By Rent A/c			4,000
14	To Sales A/c			10,000	10	By Printer A/c			7,500
17	To Commission A/c			6,000	11	By Purchases Alc			15,000
					19	By Interest on Loan			2,000
					20	By Drawings Alc			3,000
					21	By Post charges Alc			3,500
					30	By Balance c/d			31,000
				66,000					66,0000
July 1	To Balance b/d			31,000