From: "Aztech" 
Newsgroups: uk.finance
Subject: Re: very basic finance textbook
Date: Thu, 02 Feb 2006 22:25:50 GMT

"john boyle"  wrote in message 
news:Hu8sIvDHNo4DFwV2@johnboyle1.demon.co.uk...
> In message <1138897769.109931.56030@f14g2000cwb.googlegroups.com>, Troy 
> Steadman  writes
>>. Anyone who shreds the cheque does indeed pay the hotel
>>bill.
>>
>>But on this island the cheque never gets shredded. It keeps circulating
>>round and round.
>>
>>> So who paid our man?
>>
>
> The original drawer's balance sheet will show the cheque as a creditor, in 
> the same way as the Bank Return shows notes in issue. So the drawer paid 
> the original bill. The fact that the cheque doesnt get presented isnt 
> relevant.

But how is the original drawer any different to the second, third or forth 
business down the chain, and so on. What is the disadvantage of being the 
starting point of the cycle?