3 friends went to buy a clock and they contributed $20 each for the $60 clock. Later the shop keeper discovered it was for $50 and sent a servant to return them $10. The servant unable to divide 10 among the 3 keeps $4 for himself and gives them $2 each. So now each friend's expenditure is $18 only, $18 X 3=54, so $54 given by the friends and $4 with the servant, total=54+4=58. where did the remaining $2 go??

first of all, this is in the wrong section

Pardon my use of Financial terms, i'm not an accountant, but i think i can give u an answer though

i want to believe an accurate book keeping record is achieved when (Credit - Debit = 0) or the other way round, not sure which is correct, hence the basis for my answer

Credit part : (buyers end)
(amt each of them initial contributed - amount returned to each by servant) x 3 = ($20 - $2) x 3 = ($18 x 3)= $54

Debit part : (sellers end)
(Cost of Clock + Amount pocketed by Servant) = ($50 + $4) = $54

since, credit - debit = 0 , $54 - $54 = 0 *there is no missing $2*
there's no mathematical calculation that wld explain where that $2 has gone, it all boils down to the fact that as long as the buyers are not aware of the $4 pocketed by the servant, then everything is fine !

This is how some accountants Get rich overnight.  , Hence the need for Auditors. 

Can someone seriously answer this riddle please. Its almost given me a migrane.

boring but yet interesting calculations involved.,

there is no missing money, this riddle is the same as the 1Naira missing or the hotel riddle.
you are getting confused because of the mix up.

here it goes again so that you may understand it:

18 times 3= 54 here is where the miscalculation happens>>>> 54 MINUS 4=50
how can you add the 4 to the money that is owe to them, you should substract it! or isnt that money part of the repayment?!
remember now they are owed 54 NOT 60 (since they got 2 each) so clock 50+4=54

here is the exact same problem on that LONG thread:
https://www.nairaland.com/nigeria/topic-723169.0.html

yusuf_@:

first of all, this is in the wrong section

Pardon my use of Financial terms, i'm not an accountant, but i think i can give u an answer though

i want to believe an accurate book keeping record is achieved when (Credit - Debit = 0) or the other way round, not sure which is correct, hence the basis for my answer

Credit part : (buyers end)
(amt each of them initial contributed - amount returned to each by servant) x 3 = ($20 - $2) x 3 = ($18 x 3)= $54

Debit part : (sellers end)
(Cost of Clock + Amount pocketed by Servant) = ($50 + $4) = $54

since, credit - debit = 0 , $54 - $54 = 0 *there is no missing $2*
there's no mathematical calculation that wld explain where that $2 has gone, it all boils down to the fact that as long as the buyers are not aware of the $4 pocketed by the servant, then everything is fine !

This is how some accountants Get rich overnight.  , Hence the need for Auditors. 

this explanation makes a lil sense to me but still really confusing

MRbrownJAY:

there is no missing money, this riddle is the same as the 1Naira missing or the hotel riddle.
you are getting confused because of the mix up.

here it goes again so that you may understand it:

18 times 3= 54 here is where the miscalculation happens>>>> 54 MINUS 4=50
how can you add the 4 to the money that is owe to them, you should substract it! or isnt that money part of the repayment?!
remember now they are owed 54 NOT 60 (since they got 2 each) so clock 50+4=54

here is the exact same problem on that LONG thread:
https://www.nairaland.com/nigeria/topic-723169.0.html

Please poster, is this correct?

Yes, it is. There is no missing money.