Why we have to record discount received

1)Purchase is an expense to the Business on the other hand Discount received is Income to the Business . Can not mixed thoughter and show only Discounted purchase price .

2) As per the law we have to show all expenses incurred to earn profit or Income . Therefore we can not show only Income . To determine correct Income or profit we have to show all expenses incurred .

True and Fair view of Financial Statements.

Means if a cloth trading firm have car which they uses as cab to earn income expense incurred like petrol and maintenance are recorded inthe books of accounts of cloth trading firm

Purchases less return and trade discounts must be recorded as per companies acts and as standard.