D, E, and F are partners in DEF Enterprises. They want to obtain a loan from X, but X does not know any of them, so they asked Y, who is known to X, to represent himself as a partner in DEF Enterprises. X, believing that Y is a partner in DEF enterprises, thus grants the loan of Php180,000.00 to DEF Enterprises. Later, however, DEF Enterprises is unable to pay the loan as its assets amount only to Php120,000.00. How does the payment of the loan be settled: a. D, E, and F shall share in the payment of Php180,000.00 from their separate assets at Php60,000.00 each. b. The assets of DEF Enterprises shall first be exhausted. Thereafter, D, E, and F may be held liable by X from their separate assets at Php20,000.00 each. c. D, E, F, and Y shall share in the payment of Php180,000.00 from their separate assets at Php45,000.00 each. d. The assets of DEF Enterprises shall first be exhausted. Thereafter, D, E, F, and Y may be held liable by Z from their separate assets at Php15,000.00 each.
D, E, and F are partners in DEF Enterprises. They want to obtain a loan from X, but X does not know any of them, so they asked Y, who is known to X, to represent himself as a partner in DEF Enterprises. X, believing that Y is a partner in DEF enterprises, thus grants the loan of Php180,000.00 to DEF Enterprises. Later, however, DEF Enterprises is unable to pay the loan as its assets amount only to Php120,000.00. How does the payment of the loan be settled: a. D, E, and F shall share in the payment of Php180,000.00 from their separate assets at Php60,000.00 each. b. The assets of DEF Enterprises shall first be exhausted. Thereafter, D, E, and F may be held liable by X from their separate assets at Php20,000.00 each. c. D, E, F, and Y shall share in the payment of Php180,000.00 from their separate assets at Php45,000.00 each. d. The assets of DEF Enterprises shall first be exhausted. Thereafter, D, E, F, and Y may be held liable by Z from their separate assets at Php15,000.00 each.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
D, E, and F are partners in DEF Enterprises. They want to obtain a loan from X, but X does not know any of them, so they asked Y, who is known to X, to represent himself as a partner in DEF Enterprises. X, believing that Y is a partner in DEF enterprises, thus grants the loan of Php180,000.00 to DEF Enterprises. Later, however, DEF Enterprises is unable to pay the loan as its assets amount only to Php120,000.00. How does the payment of the loan be settled:
a.
D, E, and F shall share in the payment of Php180,000.00 from their separate assets at Php60,000.00 each.
b.
The assets of DEF Enterprises shall first be exhausted. Thereafter, D, E, and F may be held liable by X from their separate assets at Php20,000.00 each.
c.
D, E, F, and Y shall share in the payment of Php180,000.00 from their separate assets at Php45,000.00 each.
d.
The assets of DEF Enterprises shall first be exhausted. Thereafter, D, E, F, and Y may be held liable by Z from their separate assets at Php15,000.00 each.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
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