On January 1, 20x1, Mr. Angot and Ms. Banglo agreed to form a partnership and share profits and losses in the ratio of 3:7, respectively. Mr. Angot contributed a parcel of land that cost him P10,000. Ms. Banglo contributed P40,000 cash. The land was sold for P18,000 on January 1, 20x1, immediately after formation of the partnership. How much is the capital balance of Mr. Angot? а. 10,000 b. 18,000 с. 29,000 d. 40,000

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.