If the business is run by more than Two Partners
In such a case, following formula is applied.
MEI of A : MEI of B : MEI of C = Profit of A : Profit of B : Profit of C
Example 2.
Ajay, Bashir and Cherman enter into a partnership. Ajay contributes Rs. 320 for 4 months, Bashir contributes Rs. 510 for 3 moths and Cherman contributes Rs. 270 for 5 months. If the total profit is Rs. 208, find the profit share of the partners.
Answer -
MEI of Ajay : MEI of Bashir : MEI of Cherman= Ajay's profit : Bashir's Profit : Cherman's Profit
(MEI stands for Monthly Equivalent Investment)
= (320 × 4) : (510 × 3) : (270 × 5)
= 1280 : 1530 : 1350
= 128 : 153 :135
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