While walking in a park, one morning, I found a Hundred Rupee note on one of the park benches. I picked it up, noted the number and took it home.

In the afternoon the plumber called on me to collect his bill. As I had no other moey at home, I settled his account with the Hundred Rupee note that I had found.

Later I came to know that the plumber paid the note to his milkman to settle his monthly account , who paid it to his tailor for the garments he had made.

The tailor in turn used the money to buy an old sewing machine, from a woman who lives in my neighbourhood. This woman incidentally, had borrowed Hundred Rupees from me sometime back to buy some household appliance. She, remembering that she owed me a Hundred Rupees, came and paid the debt.

I recognized the note as the one that I had found on the park bench, and on careful examination, I discovered that the note was counterfeit.

How much was lost in the whole transaction and by whom ?

(In reply to Possible Solution by Jonny Doe)

Since rupees are currency used in India, where cows are sacred, would there really even be a milkman? Just a thought, haha..

So far, the general consensus has been that since the counterfeit note made a full circle, no money was lost or gained. Indeed, suppose I (the author) had possessed a genuine note, and this had been used for the transaction series, things would not have resulted any differently, but there would not be much of a debate at all.

Jonny's last comment poses an interesting point. It is flawed logic, however; the same sort of recursive thinking that has fueled mind games and riddles for ages.

What is being overlooked, of course, is the fact that "I" have received one hundred Rupees' worth of labor in the process. You cannot disregard this and look at the problem only monetarily, or else "I" always lose by paying someone for services.

So, the solution is still that nobody has lost or gained anything, unless (as helen mentioned before) "I" go and pass off the counterfeit note to someone else.

Posted by DJ on 2003-03-20 06:24:15