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A, B and C are solidary debtors of W and Y, joint creditors for P 12,000 where the share of the debtors in the obligation is 2:3:5 while the share of the creditors is 1:2. If A is insolvent, which of the following is correct?   a. W or Y can collect from B and C P12,000 b. Y can collect from either B or C P8,000 c. Y can collect from C P6,400 d. W can collect from B P3,200

A, B and C are solidary debtors of W and Y, joint creditors for P 12,000 where the share of the debtors in the obligation is 2:3:5 while the share of the creditors is 1:2. If A is insolvent, which of the following is correct?   a. W or Y can collect from B and C P12,000 b. Y can collect from either B or C P8,000 c. Y can collect from C P6,400 d. W can collect from B P3,200

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A, B and C are solidary debtors of W and Y, joint creditors for P 12,000 where the share of the debtors in the obligation is 2:3:5 while the share of the creditors is 1:2. If A is insolvent, which of the following is correct?

 

a. W or Y can collect from B and C P12,000

b. Y can collect from either B or C P8,000
c. Y can collect from C P6,400
d. W can collect from B P3,200
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