Capital and Time
Explain the main rule in capital and time, then apply it to a small example. State the assumption that makes your reasoning valid.
Review the noteCheck your answer
When profit is shared in proportion to investment, use capital multiplied by the time for which it was invested. This is a model, not a universal legal rule for partnerships.
Worked example: A invests 6000 for 12 months and B invests 9000 for 8 months. Their capital-time products are both 72000, so they split a 10000 profit equally under this rule.