Paula Co. issued ten-year P2,000,000 debenture bonds on January 2, 2018.

The bonds pay

interest semiannually. The company uses the effective interest method to amortize bond
premium and discounts. The carrying value of the bonds on this date was P1,859,530. A
journal entry was recorded for the first interest payment on June 30, debiting interest expense
for P130,160 and crediting cash for P120,000. The annual stated interest rate for the
debenture bonds is ______________
A. 6% C. 12%
B. 7% D. 14%

and Z are partners in XYZ Partnership, Ltd. With Y as 1imited partner. After five years of
operations, the partnership incurred debtor in favor of third persons totaling P5 million. The
total partnership assets is P3M. Who among the partners shall be liable with their separate
property in favor of creditors:

X, Y, and Z for P1 million each.

X and Y for 1 million each.

X and Z for P1.5 million each because they were general partners.

X, Y and z depending upon their capital contribution.