How much money did Shopkeeper (C) loose in the end?

Question

A Lady (L) bought an item of Rs 100 from the Shopkeeper (C). She paid him through a 500 Rs Note. Realizing that he did not have change, the shopkeeper (C) got change for that note from another Shopkeeper (S) and paid Rs 400 to the Lady. After a few days, Shopkeeper (S) realized that the note is fake, and this railed at Shopkeeper (C) and took 500 Rs back from him.
So in this whole process how much money did Shopkeeper (C) loose in the end?

Answer 1

1. I understand it this way. The first shopkeeper gives 100(goods)+400 (taken from second shopkeeper) cash to the lady. He has rs 100 cash and bad note. He adds 400 from his pocket and returns 500 to the second shopkeeper in lieu of a fake note. In totality the first shopkeeper is left with a fake note in lieu of goods worth 100 and out pocket 400 to the second shopkeeper. customer. Had this note been a good one he would not have lost anything.

Comments

Yeah. The loss is 500.00 only. When he gave back the second shop keeper 500 rupees,  he paid Rs. 400 from his pocket and balance 100 rupees was which he already had as the result of the said sales. So the loss is 400 + cost of goods sold 100, totalling 500/=.

He has to chase the customer and exchange the counterfeit note to square up everything.