Question

X, Y and Z are equal partners XYZ Partnership. A owes XYZ Partnership for P9 M. Z a partner, collected from A, P3M before X and Y received anything. Z issued a receipt on the P3M as his share of what A owes. When X and Y collected from A, A was insolvent.

A. Partner Z shall share partners X and Y with the P3M
B. Z cannot be required to share X and Y with the P3M
C. X and Y should first exhaust all remedies to collect from A
D. X and Y can automatically deduct from the capital contribution of Z in the partnership their respective shares in the P3M

Answer 1

The true statement about a partnership agreement involving partners X, Y, and Z is `Partner Z shall share partners X and Y with the P3M`

The answer is option ⇒A

Step-by-step explanation:

In a partnership, partners typically share profits and losses according to their agreed-upon partnership agreement. In this scenario, partner Z collected P3M from A before partners X and Y received anything. Z even issued a receipt on the P3M as his share of what A owes.

Since Z collected the P3M from A, it is considered a payment made on behalf of the partnership. As a result, Z should share this amount with partners X and Y, as they are all equal partners in the XYZ Partnership.

Therefore, option A is the correct answer: Partner Z shall share with partners X and Y the P3M collected from A.