Question

Purchase timber from Singh &co at the list price of 20000 allowed 10% trade discount

Answer 1

heyaa,,,,
it's journal entry will be;
timber a/c Dr. 18,000
to singh & Co. 18000
(being timber purchased)
___________________
☺☺☺

Answer 2

10% Of 20000 is 2000 therefore the timber was sold at 18000, in this case Singh CO. will debit 18 000 on sales account and credit 20000 on the sales account which was a discount offer. On the other hand the buyer will credit his purchase account by 18000 and debit 2000 for the discount received. in the double entry system.