A lady purchases goods worth Rs. 200 from a shop.
- The lady pays with a Rs. 1000 note.
- Since the shopkeeper doesn’t have change, he goes to a neighboring shop, exchanges the Rs. 1000 note for smaller denominations, and returns to give the lady Rs. 800 in change, keeping Rs. 200 as payment for the goods.
- Later, the neighboring shopkeeper returns, informing that the Rs. 1000 note is fake and demanding his money back.
How much Loss did the shopkeeper face assuming that the shopkeeper sells the goods at no profit?
Check if you were right - full answer with solution below.
Solution:
Loss of the shopkeeper = What shopkeeper gave to others - What shopkeeper took
Step 1: The shopkeeper has Rs. 200 worth of goods and Rs. 1000 in original currency; the lady enters with Rs. 1000 in fake currency, and the shopkeeper gives her Rs. 800 in change taken from the neighbor and goods worth Rs. 200.
Step 2: At this point, the shopkeeper is holding Rs. 1000 in counterfeit notes and Rs. 1000 in original currency. The lady has taken goods worth Rs. 200, and the neighbor has given Rs. 1000 real cash to the shopkeeper.
Step 3: At this stage, the shopkeeper has Rs. 200 real cash and Rs. 1000 in original currency. The lady has received goods worth Rs. 200, while the neighbor is left with the Rs. 1000 in fake currency.
Step 4: The shopkeeper is left with Rs. 200 worth of goods lost and Rs. 1000 in original currency. The lady now has goods worth Rs. 200 along with Rs. 800 in cash, and the neighbor still holds the Rs. 1000 in fake currency.
Step 5: The shopkeeper is left with a loss of Rs. 200 and is holding Rs. 1000 in fake currency. The lady has goods worth Rs. 200 and Rs. 800 in cash, while the neighbor possesses Rs. 1000 in original currency.
By, Comparing Step 1 and Step 5, we see that the lady successfully exchanged her fake Rs. 1000 currency for goods and cash totaling Rs. 1000 in value. As a result, the shopkeeper ended up trading his original Rs. 1000 currency for counterfeit money. Therefore, the shopkeeper incurs a total loss of Rs. 1000.
