Basic question about dividing money

[cadMath]

I have a basic (I think) question about dividing money between two people.

Two people have a sum of money to split - let's say $30,000. Party A owes Party B $5,000. When they split the $30,000 how should it be divided to negate the debt?

1) Both parties get 50% and Party A gives Party B an additional $5,000. The split is then Party A = $10,000 and Party B gets $20,000.

2) Party B gets $5,000 more than Party A. The split is then Party A = $12,500 and Party B = $17,500.

Any help is greatly appreciated. I know it seems simple but this one is stumping us!

Thanks

 

[wjm11]

Two people have a sum of money to split - let's say $30,000. Party A owes Party B $5,000. When they split the $30,000 how should it be divided to negate the debt?

1) Both parties get 50% and Party A gives Party B an additional $5,000. The split is then Party A = $10,000 and Party B gets $20,000.

2) Party B gets $5,000 more than Party A. The split is then Party A = $12,500 and Party B = $17,500.

The first solution is correct.

Think of it this way: forget the $5000 debt initially. Both A and B get an equal split of the $30k. The $5k that was first borrowed and then returned could have happened either before or after the $30k was split. I'd treat them as independent events.