Shouldn't Dom also have the £20 he borrowed form Charlotte as part of his assets? Even if he's already spent that £20 on something else, that "something" [value = £20] should show in his assets, shouldn't it?
Thanks for a good question. There are lots of possibilities of how Dom could have got to the point shown in the diagram. Perhaps everything else was the same before, and he simply wrote Charlotte a £20 IOU as a (terrible!) last-minute birthday present, so he didn't get anything in return. Or maybe, like you say, Charlotte lent him £20 last week and he used it to buy a nice meal at a restaurant, so he doesn't have any assets left to show for it (just a happy memory and a debt to Charlotte). Or maybe Charlotte lent him £20 last week, and he paid it into his bank account which previously had a balance of £480, so that took him up to the current balance of £500.
Shouldn't Dom also have the £20 he borrowed form Charlotte as part of his assets? Even if he's already spent that £20 on something else, that "something" [value = £20] should show in his assets, shouldn't it?
Thanks for a good question. There are lots of possibilities of how Dom could have got to the point shown in the diagram. Perhaps everything else was the same before, and he simply wrote Charlotte a £20 IOU as a (terrible!) last-minute birthday present, so he didn't get anything in return. Or maybe, like you say, Charlotte lent him £20 last week and he used it to buy a nice meal at a restaurant, so he doesn't have any assets left to show for it (just a happy memory and a debt to Charlotte). Or maybe Charlotte lent him £20 last week, and he paid it into his bank account which previously had a balance of £480, so that took him up to the current balance of £500.