Cash discount allowed by creditor:
When a creditor allows a cash discount to a debtor, it means that the debtor can receive a reduction in the amount owed if the payment is made within a specified period of time. The cash discount is a percentage of the total amount owed, and it serves as an incentive for the debtor to pay the debt promptly.

Trade discount allowed by creditor:
On the other hand, a trade discount is a reduction in the list price of goods or services provided by a creditor to a debtor. It is usually offered to wholesale customers, retailers, or other business entities that purchase goods or services in large quantities. The trade discount is expressed as a percentage off the list price and is given to encourage higher sales volume or to reward customer loyalty.

Recording in total creditors accounts:
Both cash discounts and trade discounts are recorded in the total creditors accounts. However, they are recorded differently due to their nature and purpose.

Recording cash discount:
- Debit: Accounts Receivable (to reduce the amount owed by the debtor)
- Credit: Sales Revenue (to reduce the revenue recognized from the sale)
- Credit: Cash Discount (to record the reduction in the amount owed)

The cash discount is recorded as a reduction in the amount owed by the debtor and as a reduction in the revenue recognized from the sale. It is treated as a contra-revenue account because it reduces the overall revenue generated from the sale. The cash discount is also reported as a deduction on the income statement.

Recording trade discount:
- No journal entry: Trade discounts are not recorded in the accounting records. They are simply deducted from the list price of the goods or services before the invoice is issued. The trade discount is not recognized as a separate transaction; rather, it is reflected in the final invoice amount.

Since trade discounts are not recorded in the accounting records, they do not affect the accounts receivable or sales revenue. The purpose of a trade discount is to establish a lower price for a specific customer or group of customers, without impacting the overall financial statements.

Summary:
- Cash discounts allowed by creditors are recorded as reductions in the amount owed by the debtor, as well as a reduction in the revenue recognized from the sale.
- Cash discounts are recorded in the accounts receivable and sales revenue accounts, as well as a separate cash discount account.
- Trade discounts allowed by creditors are not recorded in the accounting records. They are simply deducted from the list price before issuing the invoice.
- Trade discounts do not affect the accounts receivable or sales revenue and are not recognized as separate transactions. They are reflected in the final invoice amount.

Trade discount will be recorded in total creditors a/c because cash discount is not recorded in books of a/c .It is just deducted from the amount.