Tom and Jane are equal business partners Tom loans Jane 1200

Tom and Jane are equal business partners. Tom loans Jane $120,000. The business has a bill of $90,000 to pay. Jane puts $47,000. Tom puts $12,000 and borrows $30,000 from Jane, amounting to $42,000. Tom will owe Jane $5,000. Tom borrows $76,000 from Jane. Who owes who what?

Solution

Money lend by Tom to Jane = $120,000

Money Lend by Jane to Tom = $30,000 + $5,000 + $76,000 = $1,11,000

Now the bill for the company was only $90,000, hence since they are equal business partners, the share of Tom and Jane will be

=> Total amount/2 = $45,000 but both Tom and Jane paid $47,000, hence there is an excess payment of $2000 each by Tom and Jane