Source: Tejas Hiremani (EE, IITB) asked this question. I had read it before in Peter Winkler's puzzle book and Carnegie Mellon's Puzzle Toad site. Nice problem.
Given 3 buckets containing x,y,z litres of water. Assume buckets have "large" size. x, y, z are integers. You can move water from one bucket to another only if the bucket to which water is being transferred doubles the amount of water it has. So, all moves have to of the form:
If water is being moved from bucket containing x litres to bucket containing y litres. After the operation, the bucket containing y litres has 2y litres and the first bucket has x-y litres. Show that you can always empty one of the buckets. :)
One solution posted by Aaditya Ramdas (CSE, IITB alumnus - Tower Research Analyst) in comments. A different solution posted by me in comments.