Jinx
when in doubt, upgrade!
- Location
- So Jordan, Utah
Stimulus Story
- Thread starter chadr
- Start date
Cherokeester
Registered User
- Location
- Wellsville Utah
Ok we have 3 guys (me, cody and gravedigger?) at least doing the math one way, Cherokeester another, is this Wellsville math?
Not at all, just take a civics class. Everyone wants to believe that this scenario is reality, wherein if everybody just paid everybody then we are good.
Someone is not getting paid somewhere and taking it in the shorts. In this case it is the hotel keeper. Those of you who doubt, I would not hire you to run my business. Also, nothing serious here, it is all in fun.
Cherokeester
Registered User
- Location
- Wellsville Utah
nope just $100
Sorry Jinx but the hooker owed him $100.00 and he owed the butcher $100.00. That is negative $200.00 in anyones business ledger.
By your math, if the hooker owing him $100 makes him -$100 (thus making the hooker +$100)...then him owing the butcher $100 makes him +$100...again making his overall total $0. The problem is, in this example, every person in this town is in the exact same situation. Take the butcher, he's owed $100 from the hotel owner but he owes $100 to the pig raiser. Again, exact same situation as the hotel owner.
...don't worry, I'd never want to run your business. I'm running my own just fine
Jinx
when in doubt, upgrade!
- Location
- So Jordan, Utah
different accounts actually, if we would like to play business ledgers. :0
$100 from the hooker would be recorded in the ledger as a debit in "Account Receivable" then when it is paid you would credit that account and debit cash.
$100 for the Butcher would be recorded in the ledger as a credit in "Accounts Payable" until the hotel keeper credits cash for the $100 and Debits the Accounts payable account for $100 showing the debt paid.
with spelling this out off the top of my head I could have the credits and debits mixed without drawing out the T accounts, but regardless its right. (terms might be off its been a while)
You see they AR and AP are on different sides of the balance sheets and where Assets should be equal to Liabiliteis plus Owners Equity.
that being said it would have been the same for the hotel guy if the hooker walked in and paid the $100 owed to him then he walked over the butcher. Regardless if the tourist came to town...
(and yes this is all if fun. )
$100 from the hooker would be recorded in the ledger as a debit in "Account Receivable" then when it is paid you would credit that account and debit cash.
$100 for the Butcher would be recorded in the ledger as a credit in "Accounts Payable" until the hotel keeper credits cash for the $100 and Debits the Accounts payable account for $100 showing the debt paid.
with spelling this out off the top of my head I could have the credits and debits mixed without drawing out the T accounts, but regardless its right. (terms might be off its been a while)
You see they AR and AP are on different sides of the balance sheets and where Assets should be equal to Liabiliteis plus Owners Equity.
that being said it would have been the same for the hotel guy if the hooker walked in and paid the $100 owed to him then he walked over the butcher. Regardless if the tourist came to town...
(and yes this is all if fun.
)
Jinx
when in doubt, upgrade!
- Location
- So Jordan, Utah
sorry for the buzz killer...
I think the part that is confusing Cherokeesteesteer is it appears the hotel guy is giving away money twice but only receiving once, looking like he is out 100.00 when in fact he isn't. That's what I thought the first time I read it anyway.
Hotel Guy in 100, out 100
Butcher in 100, out 100
Pig Farmer in 100, out 100
Feed and Fuel Guy in 100, out 100
Hooker in 100, out 100
Hotel Guy (again) in 100, out 100
So you can see, in this Communist society everyone breaks even.
Is that the only thing accountants are good for?
Hotel Guy in 100, out 100
Butcher in 100, out 100
Pig Farmer in 100, out 100
Feed and Fuel Guy in 100, out 100
Hooker in 100, out 100
Hotel Guy (again) in 100, out 100
So you can see, in this Communist society everyone breaks even.
Is that the only thing accountants are good for?
RockMonkey
Suddenly Enthusiastic
Look people, the plane takes off. End of discussion!
Look people, the plane takes off. End of discussion!
But who pays the 100 to the pilot to fly the plane?
KWight
Active Member
- Location
- Grand Junction, CO
Did the hooker get paid for the services she provided to the wealthy business man while he was upstairs looking at the rooms?
Jinx
when in doubt, upgrade!
- Location
- So Jordan, Utah
what else do you get for $100.
- Location
- West Jordan
what else do you get for $100.
Accounting services by Jinx?
RockMonkey
Suddenly Enthusiastic
Bryson could buy a fender for a certain scooter that he ran into something for that amount.
Oooh, dirt! Doo tell!
Oooh, dirt! Doo tell!
Seems Bryson needs scooter riding lessons. He stopped in last weekend and tried out Vinnys scooter. Somehow he collided with something in the parking lot. He called up Vinny and asked if he wants all the parts in a bag.
Ninjas and scooters don't mix.
- Location
- West Jordan
KWight
Active Member
- Location
- Grand Junction, CO
It WAS a VERY fast scooter...
Fixed it for you!