QUESTION 4 Lan, Zaza and Hasdi are partners of trading business which focus on selling children's shoes. They set up a business with the name of Lazadi Enterprise last year. The business financial year ends on 31 December each year. Below are the agreement and the transactions for the year ended 31 December 2015: 1. They agreed to share profits and losses according to Section 26 of Partnership Act 1961. 2. Interest on opening capital is to be allowed at 10% per annum and interest is to be charged at 8% per annum on all drawings made. 3. 4. All partners are entitled to receive a monthly salary of RM1,500. At the end of the accounting period, only Lan took RM15,000 of his salary. Hasdi has also agreed to give a loan of RM20,000 to the partnership business on 1 January 2015. Hak Cipta Universiti Teknologi MARA CONFIDENTIAL