Question

purchased goods of list price of 40000 for 35,000 for cash

Answer 1

The journal entry for the above question is:

Purchases account dr. 40000

to cash account 35000

to discount 5000

here a person receives the total discount of 5000 since the items are bought by them at 35,000 when the actual cost was 40,000.

Hence you need to mention the rate as well.