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19/05/09
11:46
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Each town person has a debt and a credit.
Town net debt - $0.
Innkeeper gets tennant, who provides revenue (which can't be recognised until the room has been used) and cash, which is a prepayment.
Innkeeper takes cash and the cycle removes all the debts and credits.
Innkeeper winds up with the note. When traveler leaves, innkeeper looses the revenue and so gives back the $100.
Town net debt, $0.
Could also have been achieved by each person selling their credit to their debtor.
Ain't double entry accounting exciting?
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