Question

sold goods to shyam of the list price Rs. 20,000 at trade discount of 10%.

Answer 1

"Trade Discount is not recorded in the books of accounts..it is deducted from the List price of that product and the net amount is considered to be the historical price of that product unlike cash discount.

So the Purchase price will be

 20000 - 10% (Trade Discount) = 18000.

Therefore, 18000 is purchased price."