QUOTE(FeedFool @ Mar 25 2006, 12:26 PM)
3 people go to a shop to buy a watch which is £30.
They each contribute £10 each to buy the watch.
They buy for the watch for £30, each person paying £10 each.
The shop owner later realises that the watch was not £30, but it was £25.
Prancing cow is the welcome new Winner guy! The problem is all in the question and what it gives you, then makes you explain..
Let's rejoin our friend the shopkeeper, remorseful holder of $30, $5 of which he is willing to refund..
QUOTE(FeedFool @ Mar 25 2006, 12:26 PM)
So he decides to contact the buyers and return the £5.
But he thinks how can he split the £5 between the 3 buyers.
So he decides he will take £2 and return £3 to the buyers, giving them £1 each.
The larceny begins here. Our shopkeeper already has the $30, yes he may give some back, but he also decides to receive two bucks he already had.... A cash flow mirage ... it did work for Enron for a while however.
But where were we...
QUOTE(FeedFool @ Mar 25 2006, 12:26 PM)
So now with each of the 3 getting £1 back, it works out that each person paid £9 each for the watch.
This much is true!
QUOTE(FeedFool @ Mar 25 2006, 12:26 PM)
So 3 people paid £9 each for the watch, so it total they paid £27 in total.
This is true as well!
QUOTE(FeedFool @ Mar 25 2006, 12:26 PM)
And the shop owner kept £2 for himself,
pretty much true as well, but then he went and counted it.... For the second time.... not a proper GAAP approach....
QUOTE(FeedFool @ Mar 25 2006, 12:26 PM)
which makes a total of £29. ( 9 X 3 = 27)
So where is the missing £1 ???????????????
25 + 5 -2 isn't good enough
The bogus addition is hidden behind the 'which makes $29' part. Garbage accounting, garbage question, garbage posibilities for the answer....
QUOTE(FeedFool @ Mar 25 2006, 12:26 PM)
Good luck
You'll need it in court....