Treatment of party settlement at discount on purchase

ENTRY FOR Purchase

PUR 5% LOCAL DR 70000
INPUT VAT 5% DR 3500
                       TO A LTD 73500

ENTRY FOR PAYMENT
A LTD DR 65000
              TO BANK 65000

Discount Received=73500-65000=8500

This Discount is including Vat of 5%

DISCOUNT COMPUTATION
DISCOUNT 8095.2 (8500*100/105)
+ VAT 5%    404.8
TOTAL        8500.0

ENTRY
A LTD DR 8500
             To Discount Received 8095.2
             To Input Vat 5% 404.8
-ea-

Summary

Difference Between Last Question AND This Question

In Last Question,vat is extra and in This Question vat is inclusive