A, R, A and Y are partners in ARAY Company with each one contributing P300,000 except Y who is an industrial partner. The partners agreed that A shall be exempt from liability to third persons. Three years of continued losses after the formation of the partnership resulted in unpaid liabilities to third persons amounting to P500,000.

Partnership assets have also been reduced to P200,000. From whom may third persons collect the partnership debts?

a.From the partnership assets of P200,000.00; thereafter, form the partners for their separate assets at P 100,000.00 each except A who was exempted from liability.

b.From the partnership assets of P200,000.00; thereafter, from the partners for their separate assets at P100,000.00 each except for Y does not share in the losses.

c.From the partnership assets of P200,000.00; thereafter, from all the partners for their separate assets at P75,000.00 each including A and Y.

d.From the partnership assets of P 200,000.00; thereafter, from R and A only for their separate assets at P150,000.00 since A was exempted from liability by agreement, while Y, being an industrial partner is not liable for losses.