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2014-07-20T16:29:18+05:30

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DISTANCE is the length of path transversed by the object in a certain time.
DISPLACEMENT is the distance travelled by an object in a specified direction in a certain time.

DISTANCE is a scalar quantity, i.e., it has only the magnitude.
DISPLACEMENT is a vector quantity, i.e., it has magnitude as well as direction.

DISTANCE depends on the path followed by the object.
DISPLACEMENT does not depend on the path followed by the object.

DISTANCE is always positive.
DISPLACEMENT can be positive, negative or zero.

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2014-07-20T16:36:27+05:30
Actually in simple words 
distance is the total path covered by the body 
displacement is the shortest path between the initial point and the final point
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