Splitting the cost

[Ravenshield]

Hello!

I am trying to figure out how to go about splitting the cost for a bunch of items that were purchased by separate people.

Item 1 was purchased for $302.00 by Person 1
Item 2 was purchased for $53.00 by Person 2
Item 3 was purchased for $700.00 by Person 3
Item 4 was purchased for $20.00 by Person 4

We want to split the cost even among the 4 people. We then need to figure out who owes who.


Can anyone help me with this in understanding how this would work?

 

[stapel]

I am trying to figure out how to go about splitting the cost for a bunch of items that were purchased by separate people.

What are the rules for the split? Each has purchased his own item. Why are they needing to "split" the costs of their individual purchases?

Item 1 was purchased for $302.00 by Person 1
Item 2 was purchased for $53.00 by Person 2
Item 3 was purchased for $700.00 by Person 3
Item 4 was purchased for $20.00 by Person 4

We want to split the cost even among the 4 people. We then need to figure out who owes who.

Can anyone help me with this in understanding how this would work?

What is the total cost? Amongst how many people is this total to be divided? Comparing this to each person's receipt, what is the difference in each case? Where are you stuck in the division and/or subtraction?

Please be complete. Thank you!

 

[Ravenshield]

The items were purchased for as gift. Even though each person spent money on each gift, we want to split the cost between the 4 people so that we all have spent an equal amount.

The total is $1075. This is to be split by 4 people, so we would each spend $268.75.

I've attached a picture of my excel sheet since it doesn't let me upload an excel file. I end up with the following:

Person 2 owes Person 3 $182.5
Person 2 owes Person 1 $33.5

Person 3 and 4 are a couple, so the costs split between them, however, we keep them separate so we can divide by 4.

Am I on the right track or are my calculations horribly wrong?

 

[Ishuda]

Hello!

I am trying to figure out how to go about splitting the cost for a bunch of items that were purchased by separate people.

Item 1 was purchased for $302.00 by Person 1
Item 2 was purchased for $53.00 by Person 2
Item 3 was purchased for $700.00 by Person 3
Item 4 was purchased for $20.00 by Person 4

We want to split the cost even among the 4 people. We then need to figure out who owes who.


Can anyone help me with this in understanding how this would work?

The simple way: If (a bunch of) something(s) cost x dollars and you split it into n equal parts each part is x/n. So everyone puts in x/n into a pool. Now they collect from the pool what they spent.

Example: Mike, Jerry, and Sue bought a $10 item, a $20 item, and a $210 item respectively. The total cost is $10+$20+$210=$240 so each 'owes' $80. Mike already spent $10, so he puts $70 into the pool [puts in $80 and takes out the $10 he spent], Jerry puts in $60 [puts in $80 and takes out the $20 he spent]. So now there is $130 in the pool and Sue takes it [Sue puts in her $80 making a total of $210 in the pool and takes out the $210 she spent].

 

[Ravenshield]

What would be the difference if you decided to go about splitting each individual cost by the number of people involved? Or is this the wrong way to go about splitting the cost and if so, why?

 

[stapel]

What would be the difference if you decided to go about splitting each individual cost by the number of people involved?

How would you propose working this?

Or is this the wrong way to go about splitting the cost and if so, why?

"The right way" is whatever way the "rules" say, or whatever way the parties decide amongst them is fair.

 

[Ishuda]

What would be the difference if you decided to go about splitting each individual cost by the number of people involved? Or is this the wrong way to go about splitting the cost and if so, why?

You could go about it that way for each individual item if you wished and still get the same results. A buys a $10 item, B buys a $20 item:
First way: Total cost = $30 so $15 each. A puts $15 in pot and takes out the $10 he spent leaving $5. B puts $15 in pot and takes out $20 she spent. All even.
A is out $10 for item plus $15 to pot minus $10 from pot = $15
B is out $20 for item plus $15 to pot minus $20 from pot = $15

Second Way:
Item 1 is $10 so $5 each. B puts in $5 and gets nothing out of the pot leaving $5 in pot. A puts in $5 and takes out $10 he spent. At this point
A is out $10 for item plus $5 to pot minus $10 from pot = $5
B is out $20 for item plus $5 to pot minus $0 from pot = $25
Item 2 is $20 so $10 each. A puts $10 in pot and takes out nothing. B puts $10 in pot and takes out $20 she spent.
A is out $5 from first item and $10 to second item pot = $15
B is $25 from first item plus $10 to second item pot minus $20 from second item pot = $15

 

[Ravenshield]

Okay so I did 2 calculations for the same problem. In the first calculation I split the total cost of all items. In the second calculation, I split the cost for each individual item and then tried to figure out who owed who at the end. Right now I am getting different results with each calculations. What am I doing wrong here? Should both calculations give the same result?

Calculation 1:

Calculation 2:

 

[Ravenshield]

I understand how this method works as this is what I used originally. At this point I am only trying to figure out why I am getting a different outcome using the other method or splitting the cost of each item first. I realize this would be more involved, but still should equal the same result?