If the business is run by Two Partners
Suppose A and B are two partners that run the business. In such a case following formula is used:
Another formula is
(MEI stands for Monthly Equivalent Investment)
Example 1.
Akshay and Bobby together invested Rs. 12,000 in a business. At the end of the year, out of a total profit of Rs. 1800, Akshay's share was Rs. 750. What was the investment of Akshay?
Answer -
As from the above information, profits are shared in the ratio of their investents. Money invested by A and B for the same period so, following formula will be apply.
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