Who owes who money optimization

Question

Say you have n people, each who owe each other money. In general it should be possible to reduce the amount of transactions that need to take place. i.e. if X owes Y £4 and

Answer 1

I think you need to build a different data structure ( a tree, each time one person is the root node) that will check for each person how many "transaction" can you "kill", than, choose the best one, make the cycle, and rebuild it again.it is not o(N), I Think it's N^2 though, and it will not give you the best result. it is just a strategy.