A is a managing partner of A and B partnership. X is indebted to A for P25,000 and the partnership for P75,000. When both debts mature, X pays A P10,000 and the latter issues a receipt for his personal credit. The payment for P10,000 shall be applied. a. To the whole debt owing to A. b. 1/4 in favor of A and 3/4 in favor of partnership. c. Debt owing to the partnership. d.1/2 in favour of A and 1/2 in favour of the partnership
A is a managing partner of A and B partnership. X is indebted to A for P25,000 and the partnership for P75,000. When both debts mature, X pays A P10,000 and the latter issues a receipt for his personal credit. The payment for P10,000 shall be applied. a. To the whole debt owing to A. b. 1/4 in favor of A and 3/4 in favor of partnership. c. Debt owing to the partnership. d.1/2 in favour of A and 1/2 in favour of the partnership
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A is a managing partner of A and B partnership. X is indebted to A for P25,000 and the partnership for P75,000. When both debts mature, X pays A P10,000 and the latter issues a receipt for his personal credit. The payment for P10,000 shall be applied.
a. To the whole debt owing to A.
b. 1/4 in favor of A and 3/4 in favor of partnership.
c. Debt owing to the partnership.
d.1/2 in favour of A and 1/2 in favour of the partnership
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education