Smith, the director of a small clothing company, owed Robinson, one of his suppliers, £500. He borrowed the money from Brown, the director of another small company, and repaid Robinson. A couple of weeks later, Brown demanded his money back, so Smith borrowed £500 from Robinson and paid Brown.
A month later, Robinson again demanded repayment, so again Smith borrowed the money from Brown. This procedure was continued over several months. Then one day, Smith arranged a meeting with Brown and Robinson and said, 'Fellows, this is getting ridiculous. Why don't you two exchange the £500 every couple of weeks and leave me out of it?'
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