​Journal entry is not made for which of the following ?

Correct option is C

Correct Answer: (c) Trade Discount

Explanation:
• Journal entry is not made for Trade Discount because it is deducted at the time of sale or purchase itself.
• It is not recorded in the books of accounts as it does not form part of the transaction value.

Information Booster:
• Trade discount is given by sellers to buyers on list price to promote sales.
• It is shown only on the invoice but not recorded in journals or ledgers.
• Only the net amount (after trade discount) is entered in the books.
• In contrast, cash discounts are recorded because they are given at the time of payment.
• Journal entries are made only for financial transactions that change assets, liabilities, or capital.

Additional Knowledge:
• Rebate – Recorded in books; it represents an allowance or reduction granted after sale.
• Commission – Recorded as income or expense, depending on the context.
• Cash Discount – Recorded when payment is made early or on time.