Trade payables are amounts owed to suppliers for goods, services, or non-current assets bought on credit. They are a current liability, always recorded against a named supplier, and removed only when the business pays (or returns the goods). Businesses buy on credit so they can keep their cash longer for other needs.
Trade and cash discounts work the same way here: a trade discount is a reduction off the list price to encourage bulk buying and is never recorded; a cash discount rewards early payment and is recorded. For a buyer, the cash discount taken is Discount received — an income that increases profit and decreases trade payables by the discount amount.
Accounting for trade payables records the credit purchase (Dr Inventory or the non-current asset / Cr Trade payables), returns to the supplier (Dr Trade payables / Cr Inventory), and the later payment (Dr Trade payables / Cr Cash at bank), with any Discount received credited as income. The cost of bringing goods in is added to Inventory; delivery and installation on a non-current asset are added to the asset's cost. Discount received appears under Add: Other income in the Statement of Financial Performance, and trade payables appear under Current liabilities in the Statement of Financial Position.
To interpret a trade payable account, remember it carries a credit balance: a credit entry increases the payable (a credit purchase), while a debit entry decreases it (a payment, a return, or a discount received). Read the particulars column to identify which.
Before choosing a supplier, a business weighs accounting information (price, trade discount, credit terms and cash discount, delivery, installation and maintenance costs) and non-accounting information (local or overseas, after-sales service, return policy, online vs brick-and-mortar, reputation, warranty). In a "which supplier" SBQ, state your decision first, then support it with evidence linked to financial impact — 2 points for G2, 3 points for G3.