1.

Petalcorin is indebted for P5,000 to JDS Trading Company, a partnership managed by Dulzura to
whom Petalcorin also owes P10,000.00. The two debts which are both demandable are unsecured.
Petalcorin remits P4,500.00 to Dulzura in payment of his debt to her. Accordingly, Dulzura issues
a receipt for her own credit. To which credit should the payment be applied?
a. To Dulzura's credit because the payment made by Petalcorin is intended for his debt to Dulzura
who issues her own receipt.
b. To both the partnership credit and Dulzura's credit proportionately at P1,500.00 and P3,000.00,
respectively.
c. To Dulzura's credit because its amount is greater than that of the partnership credit.
d. To the partnership credit because the managing partner should not prefer her own interest to
that of the partnership.

2. Joseph, Aris, Dex and Earl are partners in JADE Enterprises, a jewelry store, with Joseph
contributing P50,000.00; Aris, P20,000.00; and Dex, P30,000.00. Earl is an industrial partner and
manages the partnership. Based on the foregoing information, which one of the following
statements is false?
a. Joseph may engage in the buying and selling of rice without the consent of the other partners
b. Earl may engage in the buying and selling of rice without the consent of the other partners
c. Earl is not liable for the losses of the partnership
d. Earl may be held liable by third persons for partnership debts with her separate property

3. MARILEN Company is owned by the following partners with their respective contributions: Mary,
P10,000.00; Anna, P20,000.00; Rose, P30,000.00; Irma, P40,000.00; Liza, P50,000.00; Edna,
P100,000.00; and Nora, P200,000. Except for Edna and Nora, all the rest are managers without
any specification as to their respective duties. Mary wants to buy goods from Excellent Company.
Liza opposes. Anna and Rose side with Mary while Irma sides with Liza.
a. The group of Mary will prevail because they constitute the majority.
b. The group of Liza will prevail because they constitute the controlling interest.
c. The group of Mary will prevail because they constitute the controlling interest.
d. Suppose Rose abstains, the group of Mary will prevail.

4. In case of an imminent loss of the business of the partnership, the following partners are required
to give additional contribution except:
a. General partners
b. Industrial partners
c. Limited partners
d. None of the partners

5. S1: A capitalist partner may not engage in any business unless there is a stipulation to the
contrary
S2: Co-ownership does not by itself establish a partnership notwithstanding sharing in the profits
made by the use of the property
a. True, True
b. True, False
c. False, False
d. False, True

6. S1:The partner appointed manager in the articles of co-partnership can execute all acts of
administration despite the opposition of his other partners unless he will act unreasonably
S2:In the absence of stipulation, the share of each partner in the profits and losses shall be equal
to each other
a. True, True
b. True, False
c. False, False
d. False, True

7. S1: In the absence of stipulation, partners shall contribute equal share in the partnership capital
S2: The receipt of a person of a share in the gross returns is disputable evidence that he is a
partner in the business
a. True, True
b. True, False
c. False, False
d. False, True

8. Don is indebted to Ding-a-dong Partnership in the amount of P100,000 and to Ding, the managing
partner in the amount of P50,000. Ding collects from Don P50,000.Which is not correct?
a. Don cannot recover the payment
b. If Ding gives his own receipt, the payment shall be applied to the two credits proportionately
c. If Ding gives a receipt of the partnership, the payment shall be applied to the credit of the
partnership
d. If Ding gives his own receipt, the payment shall be applied to his credit

9. The remedy of the capitalist partner against an industrial partner who engaged in a business for
himself without the expressed permission from the partnership
a. To compel the industrial partner to sell his interest to the said capitalist partners
b. To remove him as manager if he is appointed as manager of the partnership
c. To expel him from the partnership and claim for damages
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 d. To exclude him from sharing in the profits of the partnership

10. A, B and C as partners in a partnership stipulated and mutually agreed that A shall not share in
the profits and losses. Is the agreement valid as among the partners only and not against third
persons?
a. Yes, because among the partners it is valid to exempt one from sharing in the profits and losses
b. Yes, valid as long as third persons are not prejudiced
c. Not valid stipulation exempting a partner from sharing profits and losses
d. Not valid as against third persons or partnership creditors

11. A contributed P1M. B contributed P1M, and C contributed services. They agreed to divide the
profits and losses equally. In case of loss of P3M, for how much if any is C liable?
a. Nothing, because an industrial partner is exempt from losses
b. P1M but with reimbursement from A and B equally
c. A and B alone shall shoulder the loss at C’s option
d. P1M

12. Suppose in the preceding case, there was no agreement as to profit-loss sharing, what will be the
share of C in the profit?
a. Equal to the share of A and B
b. Just and equitable under the circumstances
c. P1M
d. Court to fix his share

13. Based on the preceding number, what shall be his share in the loss?
a. Equal to the shares of A and B
b. Just and equitable under the circumstances
c. P1M
d. None

14. Bears the risk of things contributed to the partnership:

15. X, Y and Z are partners, with X contributing P60,00; Y P40,000; and Z service. They agreed to
divide the profits and losses in the following proportions: X, 35%; Y, 25%, Z,40%. If the
partnership incurred a loss of P10,000, how should that loss be shared by the partners?
a. X P6,000; Y P4,000; Z Nothing
b. X P3,500; Y P2,500; Z P4,000
c. X P5,000; Y P3,500; Z P2,000
d. X P4,500; Y P3,000; Z P2,500

16. A is the capitalist partner and B the industrial partner. A is engaged personally in the same kind of
business the partnership is engaged in.
a. If there are losses, the partnership will bear the losses
b. If there are profits, the profits will be shares by A and the partnership
c. If there are profits, A will give the profits to the partnership
d. A will be excluded from the partnership and pay damages.

17. A is the managing partner of ABC Partnership. X owes A personally and ABC Partnership P20,000
each. A collected and receive from X, P10,000 and he issued a receipt wherein it is stated that the
amount is applied against his personal credit.
a. The amount received will be applied in favor the partnership credit
b. The amount will be applied in proportion to both credits
c. The amount received will be applied in the credit of A
d. All the partners will decide as to whose favor it will apply

18. A, B and C are general partners in ABC Partnership. D is a debtor to the partnership in the amount
of P15,000. A received from Debtor D the sum of P5,000 and issued a receipt identifying the
amount as his share. Then D became insolvent, B and C cannot collect the P10,000.
a. A cannot be compelled to share the P5,000 with B and C
b. B and C can charge the capital of A with their share of the P5,000
c. A can be compelled to share B and C the P5,000
d. B and C automatically sue D to collect the P10,000

19. R, S and T are partners. T is the industrial partner who in addition to his services, he also
contributed capital to the partnership. There is no stipulation as to sharing of profits and losses.
The partnership realized profits of P21,000. The share of T in the profits:
a. R and will determine T's share I, in the profits
b. T's share is P7,000
c. Pro-rata to his contributed capital
d. Nothing, because he is an industrial partner

20. A is the managing partner of A and Company. X is indebted to A for P20,000 and to the
partnership for P60,000. When both debts mature, X pays A P20,000 and the latter issues a
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 receipt for his personal credit. The payment for P20,000 shall be applied:
a. ¼ in favor of A and ¾ in favor of the partnership
b. To the whole debt owing to A
c. ½ in favor of A and ½ in favor of the partnership
d. To the debt owing to the partnership

21. Five obligations of a partner with respect to property he promised to contribute.

22. Four requisites before a capitalist partner may obliged to sell his interest to the others

23. Three requisites for the application of Article 1792.

24. Three requisites for the application of Article 1793.

25. Give the meaning of the termed subpartnership.

GOODLUCK!

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