Q: What is an appropriation of payment ?

Ans: An appropriation of payment to a particular debt or debts where a debtor owes several distinct debts to one person.

Illustration: If there are several outstanding debts, i.e., Rs 300 for invoice #5, Rs 567 for invoice #8, Rs 853 for invoice #19 and Rs 1000 for invoice # 27. The payment from debtor to creditor is Rs 200. The question arises here is which debt would be cleared by the debtor. The rules of appropriation must be applied here.

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