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Raghavendra Rau

Raghavendra Rau

CREATIVE ACCOUNTING -- A primer

Courtesy -- Mark Perlmutter of the MicroAngels Network

A city boy, Andy, moved to the country and bought a donkey from an old farmer for $100. The farmer agreed to deliver the donkey the next day. The next day the farmer drove up and said, "Sorry son, but I have some bad news, the donkey died." Andy replied, "Well then, just give me my money back." The farmer said, "Can't do that. I went and spent it already." Andy said, "OK then, at least give me the donkey."

The farmer asked, "What ya gonna do with him?" Andy, "I'm going to raffle him off." The farmer said, " You can't raffle off a dead donkey!" Andy replied, "Sure I can. Watch me. I just won't tell anybody he is dead." A month later the farmer met up with Andy and asked, "What happened with that dead donkey?" Andy, "I raffled him off. I sold 500 tickets at two dollars a piece and netted a profit of $898."

The farmer asked, "Didn't anyone complain?" Andy responded, "Just the guy who won. So I gave him his two dollars back."