The story is divided into two parts. In Part I, schoolboy Mitya is in desperate need of money to repay a debt, but his father angrily denies him assistance. Dejected, under the instigation of a friend Makhin, Mitya simply changes a 2.50 rouble bond coupon to read 12.50 roubles, but this one evil deed sets off a chain of events that affects the lives of dozens of others, when his one falsehood indirectly causes a man to murder a woman at the end of Part I, and then seek redemption through religion in Part II.
Having written the novella in his dying years, after his excommunication, Tolstoy relishes the chance to unveil the "pseudo-piety and hypocrisy of organized religion." Yet, he maintains an unwavering belief in man's capacity to find truth, so the story remains hopeful, especially in Part II, which shows that good works can affect another as in a domino effect, just as evil does in Part I. The novella has also been translated with the title "The Counterfeit Note" and "The Forged Banknote."