What is the acceptable formula for distributing profits in an Islamic manner in a business venture involving two men trading with a capital of 3 million naira, of which 2 million belongs to one and the remaining 1 million to the other?

Scholars have differed on determining profit: is it based on the proportion of the two capital sums, like a loss, or on what the two partners have agreed upon? The Hanafis and Hanbalis hold that profit is distributed according to what the two partners have stipulated, provided it is undivided and known. Whereas the Malikis and Shafi'is hold that profit is distributed according to the proportion of the two capital sums.

So, if the capital is two million and one million, the profit distribution would be two-thirds for the one who contributed two million and one-third for the one who contributed one million. This is the view of the Malikis and Shafi'is, and it is just and sound by the consensus of scholars.

If the two partners agree not to adhere to profit distribution based on capital, and divide it equally, for example, this is valid according to the Hanafis and Hanbalis. This is also the choice of Sheikh Ibn Uthaymin, as the partner with the larger share would have voluntarily relinquished a portion of his profit.