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The manager suddenly remembers that the room rate is £25 and gives £5 to the bellboy to return to the people.

On the way to the room the bellboy reasons that £5 would be difficult to share among three people so he pockets £2 and gives £1 to each person.

Now each person paid £10 and got back £1.

So they paid £9 each, totalling £27. The bellboy has £2, totalling £29.

Where is the missing £1?

[Ref: ZVTU]

Hint: Be careful of what you're adding.

Answer:
We have to be careful what we are adding together.

Originally, they paid £30, they each received back £1, they now have only paid £27.
Of this £27, £25 went to the manager for the room and £2 went to the bellboy.

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